EU’s 12th Sanction Package Targets Russian Crypto Ownership
In its latest regulatory stride, the European Union has announced its 12th sanctions package against Russia, squarely focusing on the cryptocurrency sector. This new ban, detailed in a Q&A session on December 18, directly prohibits Russian nationals and residents from owning or controlling crypto service providers.
Aiming for Peace and Preventing Conflicts
The European Commission asserts that these sanctions align with the EU’s principal goal of fostering a just and lasting peace. “EU sanctions fulfil the EU’s key objective, which is to continue to work for a just and lasting peace, not another frozen conflict,” states the Commission.
Tightening Crypto Regulations
This measure intensifies existing restrictions on Russian access to crypto-asset wallet, account, or custody services. Notably, it also includes specific provisions to prevent circumvention, forbidding Russians from holding governance roles in entities offering these services.
Context of the Sanctions
Previously, in October 2022, the EU imposed geographical restrictions on Russian crypto wallets, a move considered as the eighth package of sanctions. Moreover, earlier regulations set a cap of 10,000 euros on crypto transactions for Russian citizens. These steps are part of the EU’s broader strategy to exert economic consequences on Russia for its military offensive against Ukraine.
Broader Sanctions and International Stance
The EU’s sanctions extend beyond the crypto sector, encompassing targeted measures, economic sanctions, and visa restrictions, particularly against Russia, Belarus, and Iran. The overarching aim is to significantly impair Russia’s capability to sustain its aggression, demonstrating the EU’s firm stand in response to the Ukraine conflict.
