The EU’s Fifth Round of Sanctions Against Russia Targets Crypto Loopholes

The European Union has imposed further sanctions on Russia in response to its aggressive activities toward Ukraine. This fifth set of sanctions includes a variety of measures aimed at both the economy as a whole and at individuals — as well as steps aimed especially at cryptocurrencies.

The new measures seek an extension of the restriction on cryptocurrency wallet deposits. The prohibition on the usage of cryptocurrency by sanctioned Russians has been expanded and now addresses previously unresolved issues.

The EU has said several times that cryptocurrency is included in the sanctions on Russia. Belarus, which is an ally of Russia, is also subject to sanctions.

Previously, the EU raised worry over Russia’s use of cryptocurrency to circumvent sanctions. While there has been a little increase in the usage of crypto as a result of the sanctions, nations have taken efforts to verify that crypto businesses comply.

Numerous cryptocurrency exchanges have ceased operations in Russia, and nations such as Japan have requested that crypto platforms refrain from serving persons on the sanctions list. Individuals who engage in these transactions may face jail or a fine in the latter scenario.

This is another round of sanctions on Russia, which is waging war against Ukraine. Numerous narratives about crypto have emerged — on both sides of the political divide — and it is becoming more evident that crypto will be on governments’ radars when future events occur.

Cryptocurrency is also a force for good in difficult times

Cryptocurrency has been a key topic of discussion during this crisis between Russia and Ukraine. It has not been all bad, since Ukraine has benefited from cryptocurrency and associated services.

Millions of dollars in contributions have poured in for Ukraine, and the cryptocurrency community has united in support of the country. Even NFT is contributing to Ukraine’s reconstruction. President Volodymyr Zelenskyy has also signed a bill regulating cryptocurrency exchanges, thus legalizing the cryptocurrency.

Cryptocurrency is proven to be a lifeline in difficult times. While it is true that it might be challenging for crypto companies when sanctioned organizations utilize it to evade sanctions, many of them are cooperating with authorities demands.

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