EU authorities have put a prohibition on making international transfers from cryptocurrency accounts based in Russia

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Last Updated on October 7, 2022 by Bitfinsider

In a statement that was made public on October 6th, the European Union announced the imposition of a new set of sanctions against Russia as a response to the ongoing crisis in Ukraine that has recently become more intense.

The latest penalties include a total prohibition on the use of cryptocurrencies for the settlement of cross-border transactions between Russians and EU citizens. In this declaration, the restriction of “any crypto-asset wallets, accounts, or custody services, regardless of the amount the wallet contains,” is included.

In retaliation for Russia’s annexation of Ukrainian land as a consequence of what the EU refers to as a “fake” referendum, in addition to warnings of nuclear escalation and the deployment of additional troops, new sanctions have been implemented.

The previous restrictions placed a limit of 10,000 euros (roughly $9,900) on the amount of cryptocurrency that may be transferred from wallets in Russia to those in the EU.

The EU’s goal is to “further deny the Kremlin’s military and industrial complex of crucial components and technologies,” which is aligned with this new total prohibition on cross-border crypto payments between the regions.

This comes not long after Russian government authorities gave their blessing to the use of cryptocurrencies for international payments. Legislators detailed the several ways to acquire bitcoin as well as its applications in the regulation that authorized such transactions.

This decision was in line with the Central Bank of Russia’s decision a few weeks earlier, on September 5, to agree to legitimize cryptocurrency for use in international transactions.

Transaction settlements in Russia’s dealings with China are going to be handled by means of a digital currency issued by the Russian central bank, which is now in the testing phase. Previously, in the year 2020, the nation passed a law that made it illegal to transact business using digital assets.

Nevertheless, with the most recent tightening of sanctions imposed by the EU, Russia was confronted with new obstructions imposed by the United States. As a result of neo-Nazi paramilitary action, the United States Treasury Department added 22 Russian individuals and two businesses headquartered in the country to its own list of sanctions on September 15. These additions were made on September 15.

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