Examining the Impact of EU Sanctions on the Russian Crypto Market

With the latest Russian escalation against Ukraine, the EU has decided on new sanctions that will ban any crypto transactions between Russia and the EU.

EU Targets Crypto Assets in Russia

European Union sanctions on the Russian economy have kept tightening since the beginning of Vladimir Putin’s “special military operation.” During the first months of the Russo-Ukrainian war, the EU imposed only a partial ban on crypto assets. Following the recent escalations against Kyiv, the EU Commission declared that any cross-border transfer of crypto assets by Russian residents to persons in the EU will be prohibited.

The previous sanctions had set a $10,000 (€9,700) cap on any crypto transfers from Russian to EU accounts. The new restriction aims to forbid all crypto wallets, accounts, or custody services, regardless of the amount of crypto. This will have an impact on companies operating in the region. Those that violate the new rules will be excluded from the EU market.

Photographer: Irina Grotkjaer | Source: Unsplash

Lately, several well-known cryptocurrency exchanges including LocalBitcoins, Crypto.com and Blockchain.com, instructed Russian customers to withdraw their funds before services become unavailable.

Binance, the world’s largest crypto exchange, is also attempting to put the EU’s new limits into place. Although there is not yet a defined timeline to implement these adjustments, all crypto providers are moving quickly to not risk any future ban from the EU.

Some Exchanges Still Open

In the meantime, Binance is still operating normally in Russia. American exchange Kraken hasn’t imposed any restrictions either, and it’s unclear if it will embrace EU regulations or not.

FTX, a major exchange incorporated in Antigua and Barbuda, has not yet implemented any form of prohibition. Of course, this would not be expected from Russian cryptocurrency platform Garantex, which will continue to provide service to traders in the country.

It will be interesting to keep an eye on the implementation of this new set of sanctions and observe how crypto firms will be willing to adjust their operations in consequence.

Source : bsc.news

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