The European Union has introduced new sanctions targeting crypto providers outside of Europe that support Russia’s defense sector.
In order to “target high-value sectors of the Russian economy, like energy, finance, and trade, and make it ever more difficult to circumvent EU sanctions,” European leaders have approved a new round of penalties.
Restrictive measures on “an additional 116 individuals” and businesses” responsible for actions undermining or threatening the territorial integrity, sovereignty and independence of Ukraine” are part of the most recent package, according to a news release issued by the European Council on June 24.
In a report, Reuters states that more than 2,200 entities are currently on the sanctions list as a result of the most recent action. Josep Borrell, high representative of the EU for foreign affairs and security policy stated:
“The 14th package of sanctions demonstrates our unity in supporting Ukraine and seeking to limit Russia’s criminal activities against Ukrainians, including efforts to circumvent EU measures.”
The European Council introduced a ban on transactions targeting cryptocurrency providers “established outside of the EU, when these entities facilitate transactions that support Russia’s defense-industrial base through the export, supply, sale, transfer or transport towards Russia of dual-use goods and technology, sensitive items, battlefield goods, firearms, and ammunition,” as one of several punitive measures designed to “crack down on [sanctions] circumvention.”
It’s unclear exactly how European nations intend to keep an eye on the sector for possible sanctions violations; some specialists in the field believe it will take much due diligence.
This development occurred just months after the European Parliament and Council strengthened anti-money laundering (AML) legislation for cryptocurrency companies. Cryptocurrency companies must closely monitor their consumers starting in January, especially for €1,000 or more transactions. The goal is to ensure cryptocurrencies aren’t utilized for illicit activity or to avoid sanctions.
