EU Welcomes Fifth Round Of Sanctions: Bans High-Value Crypto Services to Russia

On Friday, the European Commission introduced the fifth round of restrictions in response to Russian military aggression against Ukraine.

The EU has limited the Russian Crypto Wallet Deposits to €10,000. The restrictions are being forced to put economic pressure on the country.

While the fiat deposits by Russians are also limited by the EU, the limit is higher in this case i.e., €100,000.

EU Mitigates Crypto Wallet Deposits By Russians to €10,000

Cryptocurrencies have again come under the radar of the European Union since it has expanded its sanctions on Russia after the country’s military attack on Ukraine. The European Commission, the executive body in Brussels, announced the fifth round of restrictions in agreement with the Council of the EU, on Friday.

The restrictions are levied to further pressurize the Kremlin economically, in an effort to make it handicapped and not be able to finance its invasion of Ukraine.

Published in the Official Journal of the European Union, the latest council regulation states the “ban of provision of “high-value” crypto-asset services to the Russian Federation.”

If the total value of the digital funds exceeds €10,000 (approx. $11,000), the regulation will be implemented on the crypto wallet, custody services, or accounts for Russian citizens, other residents, and legal entities in the country.

It is fair to put further restrictions considering the current situation and the ongoing military attack of Russia against Ukraine. Particularly, it can be considered appropriate to increase the prohibition on crypto wallets deposit.

Meanwhile, the fiat deposits by Russian organizations and individuals alike are mitigated by the EU, however, the threshold is relatively high i.e., €100,000. In addition, the measures also prohibit banknotes sale along with the sale of transferable securities denominated in the euro or any other fiat currency of the EU member states to the closest ally of Moscow, Belarus, and Russia, or any other entity or individual registered there.

Moreover, the financial prohibition also includes the freezing of assets and a complete ban on the transactions of four Russian banks that make up a quarter of the banking sector of the whole country.

Western allies also including EU members and institutions, boycotted certain Russian banks from the SWIFT messaging network for interbank payments, in late February. The council and the European Commission also stated that the financial institutions in the EU markets are now being completely excluded from the EU markets.

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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