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

On the orders of President Vladimir Putin, Russia waged a full-fledged attempt to invasion on Ukraine in February, in the backdrop of prevailing geo-political tensions.

Written by Radhika Parashar, Edited by Richa Sharma | Updated: 7 October 2022 13:15 IST

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

Photo Credit: Unsplash/ Maximalfocus

In September, Russia agreed to let people send and receive cross-border payments via crypto

Highlights

Russia has been in a conflict with Ukraine since February
Several nations have imposed financial sanctions against Russia
EU aims to cut Russian military from key supplies

The Russia-Ukraine conflict, which started in February, still does not quite seem close to any end. In the midst of the ongoing tensions between the two nations, the European Union (EU) has imposed a complete ban on all cross-border crypto transactions directed towards Russia. On the orders of President Vladimir Putin, Russia waged a full-fledged military attack on Ukraine in the backdrop of prevailing geo-political tensions. Criticising Russia's violent approach to the issues, several nations around the world have imposed sanctions, restraining Russia from accessing funds from oversees accounts that could have added more fuel to the fire.

“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 EUR 10,000 (roughly Rs. 8 lakh) was allowed),” EU said in an official post.

As per the EU regulators, this 8th phase of sanctions against Russia intends to deprive the Russian military and industries of key components.

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EU's decision comes just days after the Russian government allowed the use of virtual digital assets for cross-border payments.

Back in September, Russian Deputy Finance Minister Alexei Moiseev has said that the central bank has agreed to let Russians send and receive cross-border payments using crypto.

“Now we have a bill in this part already agreed with the Central Bank on the output... It generally describes how to acquire cryptocurrency, what can be done with it, and how it can or cannot be settled with it in the first place in cross-border settlements,” Moiseev had said at the time.

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According to Russia's Ministry of Finance, the country's approach to cryptocurrencies will remain relaxed, as the infrastructure they plan to launch is too rigid for crypto.

In July, Russia's financial monitoring agency, Rosfinmonitoring had said that it was using software to track cryptocurrency transactions with the hopes of improving its capabilities.

Meanwhile, the country is also maintaining a strict oversight over the crypto sector, ensuring that Russian residents are not exposed to financial risks.

This week itself, Russia's Roskomnadzor media monitoring agency has alleged that the website of OKX crypto exchange has been spreading fake financial information and exposing people to monetary risks.

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

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Further reading: Cryptocurrency, EU, Russia, Crypto Payments

Radhika Parashar

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Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More