EU Limits Russian Cryptocurrency Deposits to €10,000
EU Limits Russian Cryptocurrency Deposits to €10,000
The European Union has set a limit on cryptocurrency deposits originating from Russia, according to a legal publication today.
The new rules are set out in the Official Journal of the European Union under the section headed Council Regulation (EU) 2022/576.
According to the text of the document, EU businesses are prohibited from providing services to Russian entities that would deposit more than €10,000 ($10,900) worth of cryptocurrency.
The rule applies to crypto companies that provide wallet, account, or custody services. As such, the rule presumably applies to all crypto exchanges, brokerages, and trading platforms.
The rule covers individuals and businesses alike: "Russian nationals or natural persons residing in Russia, [and] legal persons, entities or bodies established in Russia" all fall under the scope of the law.
The text of the document additionally sets out limits for non-cryptocurrency deposits. EU-based credit institutions are prohibited from accepting deposits from Russian entities if the total value of the deposit is above €100,000 ($108,700).
The EU Council cited the "gravity of the situation" of Russia's invasion of Ukraine, stating that it is "appropriate to extend the prohibition on deposits to crypto-wallets" in light of current events.
The EU announced financial restrictions against Russia earlier today, including prohibitions on "high-value crypto-asset services," but the precise limits were not known at that time.
Those rules also include several other prohibitions. Four Russian banks have been banned from the EU, Russia is now banned from participating in procurement contracts, and various European banknotes and securities can no longer be exported.
Various other non-financial restrictions were also included in the package, including transport, import, and export bans.
The EU previously imposed sanctions in conjunction with G7 countries on Mar. 11 and was involved in the decision to cut off Russia from the SWIFT banking network in late February.