EU Crackdown: European Union Bans Russian Crypto Payments

EU crackdown: The Russian-European battle is still burning. The recent announcement by the European Union to ban Russian crypto payments has added more fuel to the fire.

The European Union has confirmed its decision to ban cryptocurrency services to Russia. This is part of a plan to clamp down and impose economic restrictions on Russia. It is in response to what the EU said was a fraudulent referendum in Ukraine.

EU Crackdown Due to Dodgy Referendum

The referendum in Ukraine was asking the citizens in the eastern Ukrainian region of Donetsk if they wanted to become independent from Ukraine itself. Just three hours after the polls closed, the results were announced, casting doubt on the authenticity of the process. The results were not independently verified by any other entity. The consensus was that the referendum was a “shambles.”

The European Union’s ban on cryptocurrency services to Russia is part of economic and political sanctions measures. Initially the ban limited Russian payments to a value of €10,000 ($9,700). Now, the ban extends to all crypto payments.

This comes after reports that there was a surge in Russian businesses using crypto to get around existing sanctions.

The escalation of the restriction

A statement by the European Union said, “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 (previously up to €10,000 was allowed).

“The package widens the scope of services that can no longer be provided to the government of Russia or legal persons established in Russia: these now include IT consultancy, legal advisory, architecture, and engineering services. These are significant as they will potentially weaken Russia’s industrial capacity because it is highly dependent on importing these services.”

The EU says the sanctions against Russia are working. “They are damaging Russia’s ability to manufacture new weapons and repair existing ones, as well as hinder its transport of material.”

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