As part of the fifth package of sanctions imposed in response to the Ukraine war, The European Union member states today agreed to ban the provision of high-value crypto-asset services to Russia.
The decision comes after reports that crypto is being used to get around sanctions imposed in response to Ukraine’s invasion.
The measure will “contribute to closing potential loopholes” in existing restrictions, the European Commission said, and was announced alongside bans on four Russian banks, coal imports, and offering advice on wealth-concealing trusts to oligarchs.
The EU Council, which represents national governments within the bloc, extends a prohibition on deposits to crypto wallets.
Despite little evidence, European Central Bank President Christine Lagarde recently warned that crypto was being exploited to avoid sanctions.
The commission stated in an April 4 FAQ that crypto was already covered in existing asset freezes and that on March 9 the term “transferable securities” was expanded to encompass virtual assets.
