Tuesday, November 29, 2022

EU Sanction: Europe Moves to Place Further Restrictions on Russian Crypto Investments

Following the initial European Union EU sanction placed on Russian crypto investments in April, the body is set to impose even stricter ones. The move appears to be a reaction to the “fraud” independence votes currently being held in the Ukrainian regions that have been taken over by Russia.

New EU sanction may outrightly ban Russians from holding crypto

Recall that the earlier limit was pegged at 10,000 euros (approximately $9,600). And that meant that Russians within the EU’s jurisdiction could not have crypto holdings worth above $9,600. Although, at the time, the EU explained its decision. It claimed that the decision was in line with its efforts to stop Russians from using digital assets to bypass restrictions on huge money transfers. The sanction also saw crypto firms like Binance immediately adjust in kind in order to comply. 

Now, however, sources close to the EU claim that the earlier sanctions are set to be completely abolished. Potentially, this may mean that Russians within the EU will no longer be able to hold any digital assets.

Why the new sanctions?

For the past five days, votes were being held in some originally-Ukrainian regions which are now being occupied by Russia. The regions are; Luhansk, Donetsk, Zaporizhzhia, and Kherson. 

This just-concluded exercise has been widely criticized and most certainly appears to be the reason behind the new restrictions. According to Ursula von der Leyen, the European Commission president, the entire process was a fraud. Earlier today, she called the votes:

“… an illegal attempt to grab land and to change international borders by force.” 

Von der Leyen also mentioned placing restrictions on Russian oil, and Russian products in her 8-point proposal. In all, the decision is expected to cost Russia to the tune of about seven billion euros.

As of publication, however, the full length of the new restrictions remains unclear as there is no official publication yet. But as expected, that will happen once the terms are agreed upon by the 27 EU member states.

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