EU Sanctions High-Value Crypto Services To Russia While Russia's Finance Ministry Amends Crypto Bill

The European Union (EU) imposed a new set of sanctions against Moscow in an attempt to close crypto loopholes, including setting a limit of €10,000, or almost $11,000, to Russian crypto wallets as the Russian Finance Ministry amended the draft bill to regulate cryptocurrency.

The EU has imposed the fifth round of restrictions on Russia as a response to Kremlin's assault on Ukraine. The sanction targets cryptocurrency, which, according to speculations, are being used by Russian oligarchs to evade sanctions.

The latest sanction, agreed by the EU Council, has been crafted to "further contribute to ramping up economic pressure on the Kremlin and cripple its ability to finance its invasion of Ukraine." It was published in the Official Journal of the European Union last Friday.

The EU bans the provision of high-value crypto asset services to the Russian Federation, applicable to crypto wallet, account, or custody services for Russian citizens, entities and other residents established in the transcontinental country if the total value exceeds €10,000, or approximately $10,880.

Josep Borrell, High Representative for Foreign Affairs and Security Policy, said, "these latest sanctions were adopted following the atrocities committed by Russian armed forces in Bucha and other places under Russian occupation." He added, the aim of our sanctions is to stop the reckless, inhuman and aggressive behavior of the Russian troops and make clear to the decision makers in the Kremlin that their illegal aggression comes at a heavy cost."

The Russian Ministry of Finance announced that it amended the draft to set comprehensive rules for the country's cryptocurrency industry last Friday. The finalized draft law on "Digital Currency" now includes the positions and recommendations proposed by other government institutions.

"Certain bill provisions have been clarified and concretized, including those related to digital mining activities," the Russian Ministry of Finance said in a press release. "The bill provides for the creation of a comprehensive regulation of the cryptocurrency market, including the procedure for performing transactions with digital currencies and their release, as well as determining the specifics of the activities of subjects of the cryptocurrency market," it noted.

Initially submitted to the federal government in February, the bill intends to regulate crypto transactions in the transcontinental country, including activities of players in the growing industry. It was crafted to fill in regulatory gaps left following the law on Digital Financial Assets' adoption.

According to the chair of the Financial Market Committee at the lower house of Russian parliament, Anatoly Aksakov, the final draft will be adopted in the State Duma's spring session alongside amendments to the Russian Tax Code on cryptocurrency operations.