In a statement published on October 6, the European Union introduced another series of sanctions against Russia due to the prolonged and recently escalated conflict in Ukraine.
The new sanctions include a complete ban on cross-border cryptocurrency payments between the Russians and the EU. This statement includes a ban on “all crypto asset custody wallets, accounts, or services, regardless of wallet amount.”
The new sanctions were installed in response to Russia’s illegal annexation of Ukrainian territory as a result of what the EU calls a “bogus” referendum, along with troop mobilization and threats to escalate nuclear.
Previous sanctions limited cryptocurrency payments from Russia to EU wallets to €10,000 (approximately $9,900).
However, this new outright ban on cross-border crypto payments between the regions aligns with the EU’s desire to “further deprive the Kremlin’s military-industrial complex of key components and technologies.”
This comes shortly after the Russian authorities approved the use of cryptocurrencies for cross-border payments. In the policy, which approved such transactions, the legislators outlined the ways of acquiring cryptocurrencies and their uses.
The decision was in line with the Central Bank of Russia’s agreement to legalize cryptocurrencies for cross-border payments a few weeks earlier.the 5th of September.
In its relations with China, Russia intends to use a central bank digital currency, which is currently in the pilot phase, for transaction settlement. Previously, in 2020, the country passed a law that prohibited payments using digital assets.
However, after the latest tightening of EU sanctions, Russia faced additional blockades by the United States. On September 15, the US Treasury Department added 22 individuals and two Russian entities based in the country to its own sanctions list as a result of neo-Nazi paramilitary activity.
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