The European Union issued a new set of sanctions on Russia in response to the recent escalated conflict in Ukraine.
New sanctions ban cross-border cryptocurrency payments between Russia and the EU. This includes the ban on “all crypto-asset wallets and accounts or custody services regardless of the amount in the wallet.”
As a result of Russia’s illegal annexe of Ukrainian territory, the EU called it a “sham referendum”, and added troop mobilization as well as threats of nuclear escalation.
Previous sanctions had a cap on crypto payments from Russian wallets to EU wallets at 10,000 Euros (approx. $9,900).
This new ban on crypto payments across borders between regions is in line with the EU’s desire “further deprive Russia’s military complex and industrial complex key components and technologies.”
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This follows Russian officials’ approval for crypto-based cross-border payments. The policy approved these transactions and described how to acquire cryptocurrency.
This decision was in line with the Central Bank of Russia’s September 5th agreement to legalize cryptocurrency for cross-border payments.
Russia plans to use a digital currency central bank for settlements in its relations with China. This pilot phase is currently underway. In 2020, Russia passed a law banning payments using digital assets.
The United States placed additional restrictions on Russia following the EU’s latest tightening sanctions. The U.S. Treasury Department added 22 Russian persons and two entities based within the country to its list of sanctions on September 15, as a result neo Nazi paramilitary activities.