Recent EU Sanctions Stimulate Russia's Cryptocurrency Market
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Recent EU Sanctions Stimulate Russia's Cryptocurrency Market
This week, the European Union announced the adoption of the eighth package of sanctions against Russia, aimed at affecting its government, economy and energy exports, in response to the recent escalation of the military conflict in Ukraine.
Read also: The European Union is moving ahead with new crypto regulations
Sanctions have also targeted Russia's access to cryptocurrency, which is seen as a tool to circumvent financial restrictions and export wealth.
The Council of the European Union has banned the provision of wallet, account and custodian services for cryptocurrency to residents of Russia and to Russian companies.
For its part, TASS news agency, quoting a high-ranking member of the Russian Parliament, reported that the EU decision may indeed stimulate the development of the Russian crypto-financial assets (DFA) market.
It is worth noting that the Chairman of the State Duma Financial Market Committee, Anatoly Aksakov, was deeply involved in recent efforts to regulate the crypto space in the country, including the use of cryptocurrencies in international settlements.
Recent EU Sanctions Stimulate Russia's Cryptocurrency Market
In the same vein, the latest round of European Union sanctions is tightening the restrictions previously imposed.
Earlier this year, the 27-nation bloc identified high-value crypto-asset services for Russians and Russian-registered organizations (for crypto holdings over €10,000) as part of a package of measures approved, a month after the start of Russian war.
Binance and Hubei comment on EU sanctions
Anatoly Aksakov explained that similar decisions have already been taken before, since the official representative offices of cryptocurrency exchanges in Russia have been closed.
But in reality nothing has changed, and he insisted that the Russians could easily bypass the sanctions.
On the other hand, Binance has partially complied with previous EU requirements, allowing withdrawals only, in the case of Russian account balances exceeding €10,000.
It also informed users that it did not impose new restrictions, while Huobi said it continues to support stable trading for Russian users.
It is worth noting that these restrictions seem to stimulate the development of new technologies, as Aksakov promised that next year will be the year of crypto-financial assets in Russia.
His comments come as lawmakers in the State Duma prepare to adopt a new law on cryptocurrency.
It is designed to regulate decentralized crypto-assets such as Bitcoin, and employ them in cross-border crypto payments, between Russian companies and their foreign partners.