European Union Bans Russians From Using EU-Licensed Crypto Wallets and Exchanges

Just a few weeks after the Ministry of Finance and the Central Bank of Russia passed a bill to legalize cross-border settlements using cryptocurrency, the EU council has prohibited European licensed crypto companies from offering all kinds of crypto services to Russians. These severe sanctions come as a punishment for Russia’s illegal war and aggression against Ukraine.

To curb Russia’s revenue, place restrictions on its export market as well as deprive the country of European expertise and services, the European Union council rolled out an 8-package sanction against Russia. This development is said to be closely coordinated with other international partners to ensure the desired impact. 

Per the update, the sanctions also aim at depriving the Russian military of accessing key components and technologies, war weapons, and other related equipment that could further strengthen its attack against Ukraine. Alongside these hard-hitting eight-package sanctions thrown at Russia is a  new European Union import ban worth €7 billion. 

Russians Banned From Enjoying Services of European Crypto Companies

Under one section of the sanctions, the European Union has increased the ban on Russians regarding the usage of cryptocurrency wallets, accounts, and custody services offered by European crypto companies. Before now, the crypto prohibition allowed for a Russian crypto wallet to hold about €10,000 ($9,795) in assets on a European licensed exchange or wallet but now it is a total ban. 

According to the Commission, “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).”

This implies that henceforth, Russians cannot open accounts with European crypto companies (wallets or exchanges), and can neither store their crypto assets nor enjoy any of their services. It is said that this new package of EU sanctions has significantly affected the crypto assets of Russians.

Read Also: European Union (EU) Parliament Votes against Ban on Bitcoin and Ethereum’s Proof-of-Work (PoW)

Nevertheless, some experts believe that some European exchanges and wallet services will not restrict Russians, citing also that decentralized platforms are still available for Russians to carry out their crypto operations as they do not require KYC verification.  

Unfortunately, this crypto ban leveled against Russia comes after the nation became more crypto-friendly of late. On September 22, the Central Bank and the Ministry of Finance in Russia agreed to allow cross-border settlements in cryptocurrencies as stated by Deputy Minister of Finance of Russia Alexei Moiseev.

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