According to a legal release today, the European Union has put a ban on cryptocurrency deposits originating in Russia..
The new rules are published in the European Union’s Official Journal under the heading Council Regulation (EU) 2022/576.
According to the document’s language, EU companies are forbidden from providing services to Russian enterprises wishing to deposit more than €10,000 ($10,900) in bitcoin.
Crypto companies that provide wallet, account, or custody services are subject to the rule. As a result, it’s likely that the rule will apply to all cryptocurrency exchanges, brokerages, and trading platforms.
The law applies to both individuals and businesses: “Russian nationals or a natural person resident in Russia, [as well as] legal persons, companies, or bodies incorporated in Russia.”
The document’s content also establishes deposit restrictions for non-crypto currency deposits. If the total value of the deposit exceeds €100,000 ($108,700), EU-based credit institutions are forbidden from accepting deposits from Russian businesses.
In light of current developments, the EU Council stated that it is “necessary to extend the prohibition on deposits to crypto-wallets,” citing the “gravity of the situation” of Russia’s invasion of Ukraine.
The EU imposed financial sanctions on Russia earlier today, including prohibitions on “high-value crypto-asset services,” but the exact scope of the restrictions was unknown at the time.
Several more prohibitions are also included in these rules. Four Russian banks have been barred from operating in the EU, Russia is no longer permitted to participate in procurement contracts, and different European banknotes and securities are no longer exportable.
Other non-financial restrictions included in the package included transportation, import, and export limits.
On March 11, the EU issued sanctions in collaboration with the G7 countries, and it was involved in the decision to cut Russia off from the SWIFT banking network in late February.