The European Union has placed a general ban on cross-border transfers from Russian crypto wallets

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European Union places a total ban on cross-border transfers from Russian crypto wallets


The European Union announced new sanctions against Russia on October 6 in response to the protracted and recently escalating conflict in Ukraine.

The new steps includes a general ban on cross-border cryptocurrency transfers between the EU and Russia. The phrase “all crypto-asset wallets, accounts, or custody services, regardless of the value of the wallet” is included in this restriction.

In response to Russia’s claim of Ukrainian land as a result of what the EU deemed a “fake” vote, many sanctions were put in place along with strong mobilization and threats of nuclear escalation.

Previous restrictions set a $10,000 (about $9,900) limit on cryptocurrency transfers from Russian to EU wallets.

However, the EU’s intention to “further deny the Kremlin’s military and industrial complex essential components and technologies” is consistent with the new general ban on cross-border cryptocurrency transfers between regions.

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This happened shortly after Russian government officials approved the use of cryptocurrencies for international payments. The legislation authorizing these transactions includes instructions on how to acquire crypto assets and a list of their applications.

The choice is in line with the decision of the Central Bank of Russia, made on September 5 last year, to legitimize digital assets for international payments.

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In its negotiations with China, Russia intends to establish a digital currency for transaction settlements, which is already in the pilot phase. Before 2020, the country passed a law banning payments made using digital assets.

However, when EU sanctions continued to tighten, the United States imposed additional barriers against Russia. Because of neo-Nazi paramilitary activity, the US Treasury Department placed 22 Russian citizens and two entities headquartered there on its own list of sanctioned parties on September 15.

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