Latest EU Sanctions Expected To Boost Russia’s Own Crypto Market, Exchanges Keep BlockBlog Services Alive

New crypto sanctions imposed by the European Union are expected to boost the development of the country’s digital asset market, according to a Russian lawmaker. Anatoly Aksakov, who chairs the parliamentary committee on financial markets, believes that the Russians will manage to circumvent the restrictions. Meanwhile, major exchanges reportedly informed Russian users that trading was continuing.

Russians are finding ways to circumvent mounting European crypto sanctions, Duma member insists

This week the EU adopted its eighth round of sanctions against Russia, aimed at hitting its government, economy and energy exports in response to the recent escalation of the military conflict in Ukraine and the annexation of Ukrainian territories. . Russian access to cryptocurrency, seen as a tool to circumvent financial restrictions and export wealth, has also been targeted.

Latest EU Sanctions Set to Boost Russia's Own Crypto Market, Exchanges Maintain Services
Anatoly Aksakov

The Council of the European Union has completely banned the provision of crypto wallet, account and custody services to Russian residents and entities. However, according to a senior member of the Russian parliament quoted by the Tass news agency, the EU decision could actually stimulate the development of the Russian market for digital financial assets (DFA).

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The opinion was voiced by Anatoly Aksakov, head of the Financial Markets Committee at the State Duma, the lower house of the Russian parliament. He has been deeply involved in recent efforts to regulate the country’s crypto space, including the use of digital currencies in international settlements. Authorities in Moscow have been discussing the issue for more than a year and are considering an expansion of the legal framework that currently mainly covers DFAs with an issuer, such as tokens.

The latest round of EU sanctions reinforces previously imposed restrictions. Earlier this year, as part of its fifth package of measures approved just over a month after Russia launched its invasion of Ukraine, the 27-member bloc restricted only crypto-services. “high-value” assets for Russians and Russian-registered organizations — those for digital assets exceeding €10,000 in fiat value (about $11,000 then, less than $10,000 now).

Binance and Huobi Comment on Latest EU Sanctions, No New Restrictions Yet

“Similar decisions have been made before. They have closed the official representative offices of their crypto exchanges in Russia, but de facto nothing has changed. There may also be an office in virtual space, not at an address in Moscow,” Anatoly Aksakov continued, insisting that Russians can easily circumvent sanctions.

While the world’s largest crypto exchange, Binance, partially complied with earlier EU requirements, only allowing withdrawals in the case of Russian account balances above €10,000, it has now told users that it had not introduced any new restrictions, Bits.media revealed in a report. . Another major platform, Huobi, said it “continues to support stable trading for Russian users”.

Among the seven major global crypto exchanges popular with Russians, which also include Bybit, Coinbase, FTX, Kraken and Gate.io, none is a “European resident” for which the measures would be mandatory, the Russian outlet noted on the cryptography. Russian crypto experts, like the CEO of defi banking platform Indefibank, Sergey Mendeleev, doubt that most crypto companies are rushing to implement the EU resolution targeting all Russian users, as it would result in a loss. of positions in the market.

“In addition, these restrictions stimulate the development of modern technologies. Next year will be the year of digital financial assets in Russia, you will see,” Aksakov promised. His comments come as State Duma deputies prepare to pass a new “digital currency” law designed to regulate decentralized crypto assets such as bitcoin and their use in cross-border crypto payments between Russian companies and their foreign partners.

Keywords in this story

Aksakov, Binance, Conflict, Crypto, Cryptocurrencies, Cryptocurrency, Development, DFA, Digital Assets, EU, European, European Union, Exchanges, Huobi, Invasion, Legislator, Legalization, Regulation, Restrictions, Russia, Russian, Sanctions, Ukraine, War

Do you think the latest EU sanctions will speed up the legalization of cryptocurrencies in Russia? Share your thoughts on the subject in the comments section below.

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Lubomir Tassev

Lubomir Tassev is a tech-savvy Eastern European journalist who loves Hitchens’ quote: “Being a writer is who I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

Image credits: Shutterstock, Pixabay, Wiki Commons, ID1974

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Latest EU Sanctions Expected To Boost Russia’s Own Crypto Market, Exchanges Keep BlockBlog Services Alive


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