Ukraine Crisis: Crypto Wallets Targeted by EU in Latest Round of Russia Sanctions

The European Union on Friday targeted crypto wallets, banks, currencies and trusts in its fifth round of sanctions against Russia in a bid to close potential loopholes that could allow Russians to transfer money to the ‘foreign.

Following Russia’s February 24 invasion of Ukraine, EU-based cryptocurrency exchanges were already required to apply sanctions barring transactions from those targeted, but there were concerns that loopholes subsist.

The EU announced on Friday that it was extending the ban to deposits in crypto wallets.

“This will help fill in potential gaps,” the EU’s executive European Commission said in a statement.

Crypto wallets allow individuals to securely store the password that gives them access to cryptocurrencies and to send, receive, and spend cryptocurrencies like bitcoin.

The EU has said it is also banning the sale of banknotes and securities, such as shares, denominated in all official currencies of EU member states to Russia and Belarus.

He also confirmed a complete ban on transactions on four Russian banks, including VTB, which accounts for 23% market share in the Russian banking sector.

Banks have already been cut off from the SWIFT international banking messaging system and will now be subject to an asset freeze to completely cut them off from EU markets, the bloc said.

There is also a ban on advising on trusts for wealthy Russians, to make it harder for them to store their wealth in the EU.

© Thomson Reuters 2022


Leave a Reply

Your email address will not be published.

Back to top