EU plans to ban all Russian crypto payments

The European Union (EU) might tighten restrictions on Russians’ crypto investments in the EU as a response to “sham” independence votes being held in Russian-occupied regions of Ukraine, CoinDesk reported. Russian citizens could be restricted from making any payments to EU crypto wallets following the limits imposed in April.

A previous cap of crypto holdings of €10,000 will be scrapped, a source told CoinDesk, potentially meaning Russians won’t be able to hold any assets in EU crypto wallets.

This April, the EU restricted Russian payments to European crypto wallets to €10,000 as it sought to stop digital assets from being used to bypass restrictions on large bank transfers. The new measures mean that figure could now be reduced to zero.

“The sham referenda organized in the territories that Russia occupied are an illegal attempt to grab land and to change international borders by force,” said Ursula von der Leyen, European Commission President, on Sept. 28 after sham “votes” held in Donetsk, Luhansk, Kherson, and Zaporizhzhia regions.

Also, Von der Leyen announced a price cap on Russian oil, a ban on exporting aviation items and electronic components, and restrictions on importing Russian goods that would deprive the country of seven billion euros, as she said.

Complete details of the package have not yet been published, as they are still subject to discussion among EU member states.

This August, the European Union said it is building a new regulator – “Anti-Money Laundering Authority” (AMLA) – that will direct oversee crypto businesses.

The EU plans to create a brand new regulator focused on direct crypto oversight. Although the crypto industry’s attention has been drawn to the Markets in Crypto Assets regulation and the controversial Transfer of Funds Regulation, these documents are part of a broader package of EU anti-money laundering (AML) policy that will have major implications for all financial institutions.