EU Imposes Complete Ban on Cross-Border Crypto Payments in Russia

The conflict between Russia and Ukraine, which began in February, is still far from over. Amid the ongoing tensions between the two nations, the European Union (EU) has imposed a complete ban on all cross-border crypto exchanges directed at Russia.

At the behest of President Vladimir Putin, Russia launched a full-scale military invasion of Ukraine in the wake of ongoing political tensions. Criticizing Russia’s aggressive approach to these issues, several countries around the world have imposed sanctions, preventing Russia from receiving funds from controlled accounts that would have added fuel to the fire.

“The existing ban on crypto-assets has been strengthened by banning all crypto-asset wallets, accounts, or custody services, regardless of the amount of the wallet (previously up to EUR 10,000 was allowed),” the -EU means to official post,

According to the EU regulators, the 8th section of the sanctions against Russia aims to deprive the Russian military and industry of important components.

The EU decision comes days after the Russian government allowed the use of digital assets in cross-border payments.

Back in September, Russia’s Deputy Finance Minister Alexei Moiseev said the central bank has approved Russians to send and receive cross-border payments using crypto.

“Now we have a bill in this part that we have already agreed with the Central Bank on the exit … It explains in general how to get cryptocurrency, what can be done with it, and how it can be solved or cannot be solved with it in the first place. in cross-border areas,” said Moiseev said at that time.

According to the Ministry of Finance of Russia, the country’s approach to cryptocurrencies will remain free, as the infrastructure they plan to establish is very strong for crypto.

In July, Russia’s financial monitoring agency Rosfinmonitoring said it was using software to track cryptocurrency transactions in hopes of improving its capabilities.

Meanwhile, the country also maintains strict supervision over the crypto sector, to ensure that Russian citizens are not exposed to financial risks.

This week itself, Russia’s media monitoring agency Roskomnadzor alleged that the OKX crypto exchange website has been spreading false financial information and putting people at financial risk.

As a result, the OKX website has been disabled. Founded in China in 2017, OKX is now headquartered in Seychelles.

October 07, 2022