EU Bans All Crypto Wallet Services to Russia in New Round of Sanctions

The European Union (EU) has decided to impose its eighth round of sanctions against Russia as its invasion of Ukraine has now lasted seven months.

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 (previously up to €10,000 was allowed).

The EU forbids the offering of high-value crypto services in Russia at the beginning of April to “close potential loopholes” and make it more challenging for wealthy Russians to store their money in the Union.

Other measures in the most recent round of sanctions, in addition to the prohibition of cryptocurrency services, include “EU import bans worth €7 billion to curb Russia’s revenues, as well as export restrictions, which will further deprive the military and industrial complex of the Kremlin of essential components and technologies and Russia’s economy of European services and expertise.”

The provision of IT consulting, legal advice, and architectural, and engineering services to the Russian government is also prohibited by the new sanctions. Additionally, sanctions are put in place against people and organizations that are “involved in Russia’s occupation, illegal annexation, and sham “referenda” in the occupied territories/oblasts of Donetsk, Luhansk, Kherson, and Zaporizhzhia regions.” High-ranking military officers as well as organizations that assist the Russian military are subject to sanctions.

The Russian central bank has long been outspoken about its opposition to cryptocurrencies, which it sees as a threat to the Ruble fiat currency.

However, the Bank of Russia and the Finance Ministry agreed in early September to legalize cross-border cryptocurrency payments, arguing that given the current environment, doing so would be practically impossible.

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