EU bars Russians from owning crypto firms

The European Union has agreed on the twelfth package of sanctions against Russia, which, among other measures, prohibits Russians from owning, controlling, or occupying any positions on the boards of cryptocurrency-service companies.

In particular, the measure covers the provision of wallet services, accounts, or custody services for digital assets to Russian citizens and residents.

European legal entities established by Russian citizens or residents must also notify EU authorities of transfers of funds crossing the border.

This should curb opportunities to circumvent previously imposed sanctions.

The new package also provides for:

• an import ban on diamonds;
• a ban on re-export to Russia;
• tighter controls on the oil price cap;
• export–import controls;
• restrictions on the import of personal belongings into the EU;
• personal sanctions.

The restrictions will enter into force after publication in the Official Journal of the European Union.

In April 2022 the EU banned crypto firms providing services related to digital assets to residents of the Russian Federation, whose deposits exceed €10,000.

Later the European Parliament fully ruled out the possibility of servicing their cryptocurrency wallets within the euro area and holding any amount of such assets.

The EU, together with the United States, also imposed sanctions on several Russian banks, effectively prohibiting transfers from their issued cards.