The European Union has now tightened its crypto ban on Russia as part of its continued efforts to calm the ongoing war between Russia and Ukraine.
EU Government Approves Sanctions Against Russia
Last week, the European Commission made a proposal to the EU government which outlined the eighth set of sanctions against Russia. The sanctions included measures that targeted the economic and political strengths of the country.
Upon its approval, as revealed in Thursday’s press release, Russia is now deprived of several crypto-related services.
“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,” the statement said.
It is noteworthy though that, in its previous stance, the European Commission had permitted crypto transactions up to €10,000 (approximately $9,900).
Among the other sanctions outlined in the statement, the EU government deprived the Russian government and legal entities of services such as “IT consultancy, legal advisory, architecture, and engineering services.”
The EU government is confident that these actions are aiding its battle, as the statement mentioned that the sanctions “are damaging Russia’s ability to manufacture new weapons and repair existing ones, as well as hinder its transport of material.”
Russia’s Embrace of Crypto
Since the start of the seven-month-old war between Ukraine and Russia, crypto has been adopted as a tool to fund the war.
In July, the Russian government gave a disapproving look at the use of cryptocurrencies, as Russian President Vladimir Putin signed a bill that banned the use of the asset class to facilitate payments.
Despite its previously tough stance against the use of cryptocurrencies, Russia embraced the use of stablecoins as a means of cross-border payments, according to last month’s report.
Meanwhile, institutions offering crypto services have limited the services rendered in Russia, due to the continuous war effort put up by the country. In August, the Japanese financial services provider, SBI Holdings, declared its intention to shut down its crypto mining operation in Russia.
Following the fifth package of sanctions published in April, the crypto exchange Binance noted that it will limit its services to Russians.
