EU Bans Russians from Owning Cryptocurrency Companies

The European Union (EU) has taken another significant step in its ongoing effort to exert pressure on Russia through sanctions. The EU has approved its 12th package of sanctions, targeting various aspects of Russia's economic activities. One of the notable provisions in this package is the ban on Russians owning or having any involvement in companies offering cryptocurrency services.

This ban extends to the provision of wallet services, accounts, or digital asset storage services to Russian citizens and residents. Additionally, European legal entities established by Russian citizens or residents are now required to notify EU authorities of any fund transfers beyond their jurisdiction. This measure is designed to curb attempts to circumvent previously imposed sanctions.

The new package of sanctions also includes restrictions on the import of diamonds, re-exports to Russia, tighter control over oil price ceilings, export-import limitations, restrictions on personal belongings' import into the EU, and individual sanctions. These measures will come into effect after publication in the Official Journal of the European Union.

It's worth noting that in April 2022, the EU had already banned cryptocurrency companies from providing services related to digital assets to Russian residents with deposits exceeding €10,000. Furthermore, the European Parliament later completely prohibited the servicing of cryptocurrency wallets in the Eurozone and the ownership of any volume of such assets. Alongside the United States, the EU also imposed sanctions on several Russian banks, effectively restricting transactions made using their issued cards.