The European Union (EU) has stepped up its sanctions against Russia with yet another round of suspensions. This time, the Union has announced that all crypto-related services to companies in Russia be suspended with immediate effect. In perspective, this is the eighth sanction that the Union will be enforcing on the country as an effect of its refusal to stop its agitation against Ukraine. In the official statement, the body mentioned that all custody activities had been banned irrespective of the amount on the platform.
EU tightens restrictions against Russia
Asides from custody activities, accounts and crypto-wallets have also been added to the mix by the EU. According to a previous sanction, the EU enabled crypto firms around the country servicing Russian clients to facilitate not more than €10,000. The EU mentioned that this new round of sanctions is coming off the back of the insistence of Russia to continue to ravage Ukraine amid threats of nuclear attacks.
The country has also mobilized additional forces into the country in a bid to seize control. This latest round of sanctions will also limit the number of services that the Russian government will be allowed to enjoy. Most of these services are import based and include IT, legal, and other architectural services.
European Union plans to release a new crypto law
This update is coming just a day after the EU signed off on a proposed regulatory bill that will guide the activities of traders in the continent. One of the critical elements of the bill included a new law that will see holders of wallets across exchanges prove that they are who they say they are via an identity system. After the first round of sanctions at the beginning of the year, world leaders have been mulling the idea of going after digital assets. This is because it is something that Russia might be able to use to evade the sanctions.
Digital assets bypass restrictions in some aspects, making it hard for countries to fashion out a true law that will guide their usage. This is why criminals have continued to leverage their assets to carry out malicious acts despite the rules and regulations against them. However, cryptocurrencies like Bitcoin have an open system where transactions can be tracked. However, hackers have devised methods to ensure that their transactions go under the radar without detection. This is why regulators have been calling for the head of validators that have been helping Russia facilitate transactions using digital assets since March.