EU places a total ban on cross-border transfers from Russian crypto wallets

The European Union announced new sanctions against Russia on October 6 in response to the protracted and recently intensified conflict in Ukraine. 

The new measures include a total prohibition on cross-border cryptocurrency transfers between the EU and Russia. The phrase “all crypto-asset wallets, accounts, or custody services, irrespective of the amount of the wallet” is included in this prohibition. 

In response to Russia’s acquisition of Ukrainian land as a result of what the EU considers a “fake” vote, more sanctions were put in place along with force mobilization and nuclear escalation threats. 

The previous restrictions set a $10,000 (about $9,900) limit on cryptocurrency transfers from Russian to EU wallets. 

However, the EU’s goal to “further deny the Kremlin’s military and industrial complex of crucial components and technologies” is in line with the new overall prohibition on cross-border cryptocurrency transfers between the regions. 

This occurs soon after Russian government officials approved the use of cryptocurrencies for international payments. The legislation that authorized these transactions included instructions on how to obtain crypto assets and a list of their applications. 

The choice was in line with the Central Bank of Russia’s decision, made on September 5 of last year, to legitimize digital assets for international payments. 

 

In its dealings with China, Russia intends to establish a digital currency for transaction settlements, which is now in a pilot phase. Prior to 2020, the nation passed a law outlawing payments made using digital assets. 

However, when the EU’s sanctions continued to be tightened, the United States imposed more barriers against Russia. Due to neo-Nazi paramilitary activity, the U.S. Treasury Department placed 22 Russian citizens and two entities with headquarters there on its own list of sanctioned parties on September 15.