Tuesday, December 6, 2022
HomeLaw & PoliticsEU regulators ban cross border transactions from Russian crypto wallet

EU regulators ban cross border transactions from Russian crypto wallet

On October 6, the European Commission imposed a new sanction on Russia. As per the press note, the new sanction will ban all cross-border transactions occurring in cryptocurrency.

cross border transactions

The press release published by the European Union on October 6 states that the most recent round of sanctions was taken in reaction to recent “sham” referendums that were led by Russia and the ongoing escalation of the war through nuclear threats.

The Commission also imposed a new prohibition on cross-border cryptocurrency transactions between the EU and Russia as an effort to tighten its sanctions against Russia’s IT consulting and financial services.

As per news release, “the existing prohibitions on cryptocurrency have been tightened by banning all crypto-asset wallets, accounts, or custody services, regardless of the amount of the wallet.”

Prior to this, the prohibitions applied to amounts greater than €10,000.

After a few weeks when Russia began enabling transaction settlements in cryptocurrency, the EU imposed penalties on cryptocurrency-related transactions across all areas of cross-border business.

One of the news platforms reported that Russian Prime Minister Mikhail Mishustin had promoted cryptocurrencies as a substitute for cross-border payments in August. Thus, using cryptocurrency was a very real option for Russia.

However, the European Commission claims that the import bans and other measures, including the prohibition on cryptocurrencies, will further weaken the Kremlin’s financial power.

The Commission said in the press release that “In order to reduce Russia’s revenue, this package imposes new import bans from the EU worth €7 billion as well as export restrictions that will further deny the Kremlin’s military and industrial complex of crucial components and technologies and the Russian economy to European services and expertise.”

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