The European Union Tightly Implemented Crypto Regulations on Russia and Banned all Wallets and Custody Services

Russia and Ukraine wars disrupted the global economical structure.
European Union tightens rules and regulations on Russia.

The War between Russia and Ukraine has been troubling several countries, and many nations globally are facing scarcity of Gases, Petrol, and several other fuels.

According to reliable media sources, the European Union has halted all crypto services to Russian entities as part of its eighth round of sanctions against the country.

In an official press release from the European Commission, it is clearly highlighted that “The existing prohibitions on crypto assets have been tightened by banning all crypto-asset wallets, accounts, or custody services, irrespective of the amount of the wallet.”

The original limit set during April 2022 allows such services to serve Russian wallets holding €10,000 or less than that. This took place to discourage Russia’s use of crypto assets to mitigate the losses following the sanctions from western and European countries.

The steps are taken to punish Russia because it is continuously invading Ukraine, is promoting illegal war against Ukraine, and has openly announced that it will use a nuclear weapon if the situation worsens.

The halting includes IT consultancy, legal advisory, architecture, and engineering services, for Russians and the government of Russia at any cost. However, Russia is largely dependent on importing these services.

The additional ban comes a day after the European Union finalised some key crypto regulations rules. A law was also passed that included a requirement that a wallet provider must identify the users using their services and verify them.

Following the imposition of sanctions in February, the US and European leaders immediately turned their attention to crypto, fearing that the growing industry could help Russia circumvent their trade sanctions.

Bitcoin is the largest cryptocurrency in the crypto market. After the origin of cryptocurrencies, the popularity and use cases of the traditional fintech market decreased, and the massive user base shifted towards the digital currency market.

Since the global pandemic started, the crypto market has been decreasing rapidly, and more than 90% of digital currencies lost their original prices by 50-70%.

On 8th August 2022, TheCoinRepublic reported that the Russia and Ukraine war is blamed for the rising inflation in Turkey in the last 24 years. Inflation started to rise during the autumn when the central bank slowly cut the lira policy rate by 500 basis points to 14 percent in an easing cycle sought by President Recep Tayyip Erdogan.

After a war between Russia and Ukraine began, a globally popular crypto payment gateway, MoonPay, halted all its crypto-based services in Russia, Belarus, and Ukraine.

Some reliable sources state that after the war started the financial condition of Ukraine was not stable, so the government of Ukraine used cryptocurrencies for army expenditure and to purchase other valuable commodities needed at that time.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing