Breaking: EU Tightens Crypto Sanctions Against Russia and Belarus

Varinder Singh
April 8, 2022
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EU Tightens Crypto Sanctions Against Russia and Belarus

The European Union introduced another round of economic sanctions on Russia and Belarus as the conflict with Ukraine escalated.

The European Union extended prohibitions on deposits to crypto wallets, to prevent possible sanction dodging through crypto. Moreover, Russian and Belarusian companies and individuals will also be banned from buying banknotes and transferrable securities, such as stocks, bonds, etc., denominated in currencies of EU countries.

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European Union Restricts Crypto Services to Russia

The European Commission on Friday announced a fifth round of economic  sanctions against Russia and Belarus due to increasing military aggression in Ukraine.

This time, the EU has targeted cryptocurrency transactions that were possibly used by Russian oligarchs and companies to evade sanctions. Crypto companies in Europe will be forced to restrict services to Russians and Belarusians, closing any potential loopholes.

Speaking on the measures needed to pressure the Russian government into de-escalating tensions, EU Foreign Policy Chief Josep Borrell  said:

“The aim of our sanctions is to stop the reckless, inhuman and aggressive behaviour of the Russian troops and make clear to the decision makers in the Kremlin that their illegal aggression comes at a heavy cost.”

In addition to tightening crypto sanctions, the EU has imposed a ban on Russian coal, a transaction ban and asset freeze on four Russian banks, a ban on Russian and Belarusian imports and exports to the EU countries, and has also excluded Russia from public contracts and European money.

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Challenges in Preventing Crypto Exposure by Russia

Russian companies and oligarchs were criticized for using cryptocurrencies, including Bitcoin, to evade sanctions and fund the Russian military activities in Ukraine. Limiting the use of cryptocurrencies by Russia has become a challenge for countries, given the difficulty in effectively tracking crypto transactions. Despite the sanctions, Russia could explore crypto through non-compliant crypto exchanges and bitcoin mining.

Russia has recently shown interest in building infrastructure for bitcoin mining, as the country already has vast energy sources and a relatively cold climate. However, the country still lacks efficient infrastructure, and crypto mining is limited in Russia.

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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Varinder has over 10 years of experience and is known as a seasoned leader for his involvement in the fintech sector. With over 5 years dedicated to blockchain, crypto, and Web3 developments, he has experienced two Bitcoin halving events making him key opinion leader in the space. At CoinGape Media, Varinder leads the editorial decisions, spearheading the news team to cover latest updates, markets trends and developments within the crypto industry. The company was recognized as Best Crypto Media Company 2024 for high impact and quality reporting. Being a Master of Technology degree holder, analytics thinker, technology enthusiast, Varinder has shared his knowledge of disruptive technologies in over 5000+ news, articles, and papers.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.