EU sanctions Russians from owning crypto businesses

In its 12th sanctions package against Russia, the EU is doubling down on crypto limitations for Russians.

According to a Q&A on Dec. 18, the European Commission has imposed a new ban on Russian nationals and residents on Russian nationals and residents, preventing them from owning or controlling crypto service providers in response to Russia‘s military offensive against Ukraine, the announcement says.

“EU sanctions fulfil the EU’s key objective, which is to continue to work for a just and lasting peace, not another frozen conflict.”

The European Commission

This regulatory move aims to tighten restrictions on the provision of crypto-asset wallet, account, or custody services to individuals in Russia. The comprehensive package also includes measures to curb circumvention, explicitly forbidding Russian nationals and residents from holding any positions on the governing bodies of entities offering such services.

In October 2022, the bloc introduced another geographical restriction on Russia. In what was regarded as the eighth package of the sanctions, the EU banned Russian citizens from operating crypto wallets within the European Union. For context, the previous regulations stipulate a limit of crypto transactions for Russian citizens to 10,000 euros.

The EU has enhanced a set of unprecedented sanctions against Russia in early 2022 in response to Russia’s “war of aggression against Ukraine,” the bloc says on its official website.

According to the statement, the sanctions include targeted restrictive measures (as well as individual sanctions), economic sanctions, and visa measures. The aim of the economic sanctions is said to impose “severe consequences” on Russia for its actions and to “effectively thwart Russia’s ability to continue its aggression.” The bloc has also adopted sanctions against Belarus and Iran.