EU prohibits Russia-EU cryptocurrency transactions

The community of EU countries is destroying the Russian cryptocurrency sector

European Union regulators have introduced a new package of sanctions against Russia

On October 6, it was announced about the introduction of a complete ban on cross-border cryptocurrency payments between Russia and the countries of the European Union. This move significantly weakens the digital currency market in the Russian Federation, which was already in poor condition after the recent decisions of the Russian authorities.

Russia is betting on cryptocurrencies in trade with other countries

The information published on October 6 on the entry into force of the complete ban on cross-border cryptocurrency payments from Russia to EU countries is another step aimed at depriving the Kremlin of key components and technologies.

The latest sanctions appear shortly after Russia announced that their government will allow the free use of cryptocurrencies for settlements between states. In the draft of the latest act, Russian lawmakers have described in detail how cryptocurrencies can be obtained and how they can be used in trade settlements with other countries.

The recent decisions of the Kremlin authorities are in line with the decision of the Central Bank of Russia regarding the legalization of the use of digital assets for cross-border payments, which was made in August this year.

The Russian Federation aims to maintain trade relations with China. Therefore, the country is striving to introduce its Central Bank Digital Currency, which is to be used for settlements between Russia and other countries. The digital ruble project is already at the pilot testing stage.

Despite the fact that in 2020 Russia introduced a law which banned all payments with the use of cryptocurrencies, currently, due to the conflict with Ukraine and the resulting sanctions on Russians, the country is slightly changing its approach to this type of asset.

The European Union is not the only political entity that is trying to complicate the actions of the Russian Federation on the international arena. This is because the US Treasury Department on September 15 entered another 22 people and two new institutions related to the aggression against Ukraine, and which operate in the US, to the list of sanctioned entities.