EU Targets Crypto Loopholes With Fifth Round of Sanctions Against Russia

  • The European Union’s fifth round of sanctions include cryptocurrencies.
  • The new measures target loopholes with respect to cryptocurrency usage.
  • Crypto has become a central part of the sanction discussion in the conflict, though it has also helped Ukraine.

The European Union has introduced new measures against Russia for its aggressive actions against Ukraine. This fifth round of sanctions cover a lot of measures targeting both the overall economy and individuals — and has actions that specifically deal with cryptocurrencies.

The new measures call for an extended prohibition of deposits to crypto wallets. The ban on using crypto focused on sanctioned Russians has been extended and targets previously unaddressed loopholes.

The EU has repeated on multiple occasions that crypto is part of the sanctions against Russia. Belarus, which is allied with Russia, also faces the same sanctions.

The EU has previously expressed concern about the use of cryptocurrencies by Russia to evade sanctions. There has been a minor uptick in the use of crypto as the sanctions have been hit, but countries have been taking steps to ensure that crypto entities comply.

Multiple crypto exchanges have stopped operating in Russia, and governments like that of Japan have asked crypto platforms not to serve those on the sanctions list. In the latter case, those who deal in those transactions can face imprisonment or a fine.

This is yet another round of sanctions on Russia, which continues its military action against Ukraine. There have been a lot of narratives popping up on crypto — on both sides of the aisle — and it is becoming increasingly clear that crypto will be on governments’ radars when future events take place.

Crypto Also a Force of Good in Harsh Times

Crypto has been something of a major talking point during this conflict between Russia and Ukraine. It has not all been negative, as Ukraine has been the beneficiary of crypto and related services.

Millions in donations have flooded in for Ukraine, and the crypto community has banded together to support the country. Even NFTs are playing a role in rebuilding Ukraine. President Volodymyr Zelenskyy has also approved a law that regulates crypto exchanges, legalizing crypto in the process.

Crypto is proving to be something of a lifeline in tough times. It’s true that it can also prove to be difficult for crypto entities when sanctioned entities use it to escape sanctions, but many of them are complying with requests from authorities.

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