The European Union (EU) has restricted cryptocurrency services from taking deposits by Russians that exceed €10,000 in value. This guideline pertains to organizations that offer crypto wallet, account, or custodial services; crypto exchanges are likely to fall within this category. Credit institutions situated in the European Union are likewise barred from receiving non-cryptocurrency deposits over €100,000.
Cryptocurrency Deposits In Russia Are Capped At €10,000
As per a legal paper published on Saturday, the European Union has imposed a restriction on crypto deposits coming from Russian users. The new regulations are published in the Official Journal of the European Union under the part entitled Council Regulation (EU) 2022/576.
The document stipulates a ban for EU enterprises that provide services to Russians and Russian organizations. These users, from now on can no longer make deposits that exceed €10,000 ($10,900) in cryptocurrencies. The regulation applies to cryptocurrency organizations that offer custodial wallets and accounts services. As a result, the law will extend to all cryptocurrency exchanges, brokerage firms, and trading platforms.
The legislation applies to both people and businesses: “Russian citizens or persons resident in Russia, [as well as] legal persons, companies, or bodies incorporated in Russia” are all covered by the law. Additional restrictions on non-crypto deposits are spelled forth in the document. Accepting deposits from Russia-based organizations by credit institutions situated in the European Union is forbidden if the investment amount exceeds €100,000 ($108,700).
With Russia’s assault on Ukraine having reached a high “magnitude,” the EU Council has decided that it is “acceptable” to “broaden the restriction on deposits made to crypto-wallets.
Financial And Non-financial Restrictions
The European Union issued financial measures against Russia on Saturday, including limitations on “high-value virtual currency services,” although the specific constraints were not disclosed at the moment of the announcement.
Various restrictions have been added since the war began. Russia has been barred from taking part in public procurement, and different European currencies and securities are no longer permitted to be exported. In addition, four Russia-based banks have been barred from doing business in the European Union. Non-financial limitations such as transportation, importation, and export prohibitions were incorporated into the agreement and financial restrictions.
Before this, the EU had implemented penalties in concert with G7 nations on the 11th of March. This had played a role in the resolution to shut off Russia’s access to the SWIFT financial network, which was made in February. This restriction made it difficult for citizens to make international transfers.