The European Union (EU) has doubled down on previous sanctions against Russia that restricted bitcoin and cryptocurrency transactions, resulting in an outright ban on all transactions, according to a statement from the European Commission.
“The Commission welcomes the Council’s adoption of an eighth package of tough sanctions against Russia for its aggression against Ukraine,” the statement read.
All bitcoin and cryptocurrency wallets, accounts and custodial services in Russia are prohibited. Previously, transactions were limited to €10,000 ($9,900).
The ban follows recent news from Russia, where its finance ministry announced the country’s intention to allow any industry to accept bitcoin and cryptocurrency for international trade. Last month, Russian Deputy Finance Minister Alexei Moiseev said that “there is no way to do without cross-border cryptocurrency settlements.”
Russia’s need to transact bitcoin and cryptocurrency stems from an ongoing dialogue between Russia’s central bank and its Ministry of Finance as the two regulators determine how best to introduce this capability into the system. economy.
But as the two regulators debate how to accomplish this task, the EU has stepped in to ban all cryptocurrency transactions and services with its latest ban.
The new sanctions go beyond cryptocurrency to also include restrictions on individuals and entities in Donetsk, Luhansk, Kherson and Zaporizhzhia regions. Each sanctioned individual is suspected of involvement in “Russian occupation, illegal annexation and sham ‘referendums'” in the previously mentioned territories.
In addition, export sanctions targeting Russia’s military, industrial and technological access, as well as its defense sector, have been introduced. The EU also imposed a €7 billion import restriction and a cap on oil prices.