The European Union bans Russian crypto payments
EU intervention: The Russo-European battle still rages. The recent announcement by the European Union to ban Russian crypto payments has added more fuel to the fire.
The European Union has confirmed its decision to ban cryptocurrency services to Russia. This is part of a plan to crack down and impose economic restrictions on Russia. It is a response to what the EU said was a fake referendum in Ukraine.
EU breakdown due to dubious referendum
The referendum in Ukraine asked the residents of the eastern Ukrainian region of Donetsk whether they wanted to become independent from Ukraine itself. Just three hours after the polls closed, the results were announced, casting doubt on the authenticity of the process. The results were not independently verified by any other entity. The consensus was that the referendum was a “race”.
The EU’s ban on cryptocurrency services to Russia is part of economic and political sanctions measures. Initially, the ban limited Russian payments to a value of €10,000 ($9,700). Now the ban extends to all crypto payments.
This comes after reports that there was an increase in Russian businesses using crypto to circumvent existing sanctions.
The escalation of the restriction
An EU statement said: “The existing bans on crypto-assets have been tightened by banning all crypto-asset wallets, accounts or custody services, regardless of the wallet’s amount (previously up to €10,000 was allowed).
“The package expands the scope of services that can no longer be provided to the Government of Russia or legal entities established in Russia: these now include IT consultancy, legal advice, architecture and engineering services. These are significant as they will potentially weaken Russia’s industrial capacity because it is highly dependent on importing these services.”
The EU says the sanctions against Russia are working. “They harm Russia’s ability to produce new weapons and repair existing ones, as well as hinder the transport of material.”
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