More financial sanctions for Russians from EU - But for the Crypto Bans!

[Flexystar]

An array of crypto-related services have been targeted in the latest round of sanctions on Russia approved by the EU. The measures are part of an expected tightening of the economic and financial restrictions in response to Moscow’s decision to annex Ukrainian territories.

EU Council Adopts Full Ban on Crypto Wallet and Custody Services for Russian Persons
The Council of the European Union announced new sanctions against Russia on the backdrop of the deepening military conflict in Ukraine. The penalties, expected to hurt the Russian government and economy, come after Moscow took steps to annex the Ukrainian regions of Donetsk, Luhansk, Zaporizhzhia, and Kherson.

In a statement, the EU’s High Representative for Foreign Affairs and Security Policy Josep Borrell emphasized that the sanctions are a response to the latest escalation with the “fake referenda” in these four oblasts. Russian individuals and entities that have played a role in their organization will be specifically targeted.

Other Russian citizens and businesses are also going to take a hit, including those that deal with cryptocurrencies. The new measures include a full ban on the provision of wallet, account, or custody services for crypto assets to Russian persons and residents. That’s regardless of the value of these assets, according to the eighth package of sanctions imposed by Brussels.

This spring, when the EU approved its fifth round of such measures, the Council prohibited only the provision of “high-value” crypto-asset services to Russians and organizations registered in their country. The ban applied to digital funds exceeding €10,000 (close to $11,000 at the time).

New European Sanctions to Hit Russian Imports and Exports
While the earlier restrictions were meant to limit the transfer of wealth through digital assets and close other loopholes in the crypto space, a recent report revealed that pro-Russian groups have been actively using cryptocurrency, often in small transactions, to fund paramilitary operations in Ukraine. According to the research, they have raised $400,000 in crypto since the start of the invasion in late February. Russian authorities have also been working to allow businesses to employ crypto payments for international settlements.

With the latest move, the EU also bans the provision of IT consultancy and legal advisory services to Russia as well as architectural and engineering services. Russian imports and exports have been targeted, too, including the maritime transport of crude oil and petroleum products to third countries. The provision of related services will be allowed only if these have been purchased at or below a pre-established price cap, which is yet to be determined.

Among the other measures is a ban on EU nationals to hold any posts on the governing bodies of some Russian state-owned or government-controlled entities. The Council also decided to broaden the criteria under which persons can be designated as facilitating the circumvention of restrictions imposed by the European Union. The European Commission, the executive body in Brussels, welcomed the latest sanctions package.

Source



I am not sure what is the agenda here but if you read it closely then it seems that EU's now trying to cease the "settlements" that are being done in the crypto payments for whatever imports and exports that Russia might do/did and somehow they are trying to block the payment pathways so as to stop back doors as well.

However, as far as I understand crypto can't be stopped over a sanction because EU does not control the blockchain and neither they could track down whose payment it is and where is it going?

As long as the payment settler is an entity, registered organization and be involved in the payments directly or indirectly, I am sure they can do so as they will have all the companies domain information and tack them eventually.

But is it real sanction?

Is it really going to affect the crypto transaction for Russia or any entity involved if they are saying so?

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[avikz]

With all these bans and sanctions on Russia, EU is effectively killing themselves. The common people across Europe is understanding it while paying their gas and electricity bills, especially in UK. But that's not the agenda here.

Multiple countries in the world are very much willing to buy cheap Russian oil and Russia has already facilitated them to pay through Rubbles. Couple of weeks back, Russian central bank has started to experiment with cryptos as well. EU has no control there because multiple Asian countries are still buying cheap Russian gas and oil.

Russia must fall and stop the war. But the mistake EU is continuing with all these sanctions and bans, are going to hit themselves hard.

[cabron]

But is it real sanction?

Not really sure how EU can do it when Russian's money is not under their control. This is like like them once again trying to cap Russian gas when they are not in control of it.

The escalation continues and they have not learned still that sanctions never worked anymore. But if this is real sanction though, it is like sanctioning all Russians including those civilians.

[Flexystar]

With all these bans and sanctions on Russia, EU is effectively killing themselves. The common people across Europe is understanding it while paying their gas and electricity bills, especially in UK. But that's not the agenda here.

Multiple countries in the world are very much willing to buy cheap Russian oil and Russia has already facilitated them to pay through Rubbles. Couple of weeks back, Russian central bank has started to experiment with cryptos as well. EU has no control there because multiple Asian countries are still buying cheap Russian gas and oil.

Russia must fall and stop the war. But the mistake EU is continuing with all these sanctions and bans, are going to hit themselves hard.

That's what the play here. EU is hampering themselves as the war continues. Though they are powerful together but they lack the natures power of getting daily fuel. The more they stretch it the more they gonna dig up the holes for themselves. Russia has advantage of geolocation and strategic partners across the asian continent so they are going to get money by all means for their crude oil.

If this continues then EU will pay heavy tolls in the future when global recession hits with full power.

But is it real sanction?

Not really sure how EU can do it when Russian's money is not under their control. This is like like them once again trying to cap Russian gas when they are not in control of it.

The escalation continues and they have not learned still that sanctions never worked anymore. But if this is real sanction though, it is like sanctioning all Russians including those civilians.

Not just the fiat or transactions associated with it, but also the crypto. In fact crypto isnt in anyone's control still they are having so called treaties for all the bans and stuff. Seems nothing is going into right direction here.

[BIT-BENDER]

More sanctions for Russia but still no results coming forth. I want to ask what are the sanctions then for? Are this sanctions meant to frustrate Russia into accepting what the EU wants from then or are most of this sanctions meant to even aggravate the whole situation.

Yea punishment can be a solution but it is never a permanent one, the EU and other bodies has been on several sanctions on Russia for long now but not positive outcome, I think if the same energy put into all this is channeled towards a peaceful dialogue it would take time but it may bring the needed peace.

[tabas]

It won't do nothing to Russia. Whether they ban almost every payment processors, they can't just regulate the incoming and outgoing payments that will come from them. How will they know if it's really from there? No one will know. We've seen that when payment processors have issued a warning of halting their operations in Russia, still, Russia has made some moves that makes them individual and with its partner, China. So, no matter what they try to stop them, it will just make them more rely on their own and its alliances.

[goaldigger]

More sanctions for Russia but still no results coming forth. I want to ask what are the sanctions then for? Are this sanctions meant to frustrate Russia into accepting what the EU wants from then or are most of this sanctions meant to even aggravate the whole situation.

Yea punishment can be a solution but it is never a permanent one, the EU and other bodies has been on several sanctions on Russia for long now but not positive outcome, I think if the same energy put into all this is channeled towards a peaceful dialogue it would take time but it may bring the needed peace.

Russia is not cooperating with those peace talks, and the only way to fight them is with this sanctions and not to have another war because many countries can’t totally afford it. Banning crypto might not be a big one for Russia to concern with, but in long term this sanctions will be felt by Russia and hopefully by that time, the war already ended. If Russia will stop the war, these sanctions will stay for a while, we may not see the effect of this but eventually, Russia will fail. Let’s not hope that Russia will not escalate this war into a nuclear war, those sanctions may trigger Russia to do this but i hope EU are ready for that. 

[Hydrogen]

Targeting private citizens of russia is not quite the same as imposing economic sanctions on the country.

This is more of a divide and conquer tactic. Where it is assumed that pressuring russian private citizens will cause russia itself to splinter and cave in under pressure.

Although there is a chance that this tactic will further unify and strengthen the resolve of russians.

Most citizens of russia are merely living their lives and have no connection to Putin or the war in ukraine. All they see if themselves being unfairly hit by restrictions that have nothing to do with them. The only support or sympathy they can rely on, will come from Putin. So perhaps this will further solidify russia beneath Putin as a leader.

The most surprising thing about all of this is how fast politicians and the private sector can move when they want to. They often stay in office for decades without doing anything. But in these last few years they have moved very quickly to pass many laws. I wonder why that is.

[Ozero]

Targeting private citizens of russia is not quite the same as imposing economic sanctions on the country.

This is more of a divide and conquer tactic. Where it is assumed that pressuring russian private citizens will cause russia itself to splinter and cave in under pressure.

Although there is a chance that this tactic will further unify and strengthen the resolve of russians.

Most citizens of russia are merely living their lives and have no connection to Putin or the war in ukraine. All they see if themselves being unfairly hit by restrictions that have nothing to do with them. The only support or sympathy they can rely on, will come from Putin. So perhaps this will further solidify russia beneath Putin as a leader.

The most surprising thing about all of this is how fast politicians and the private sector can move when they want to. They often stay in office for decades without doing anything. But in these last few years they have moved very quickly to pass many laws. I wonder why that is.

Russia unleashed the most brutal and bloody war against Ukraine, which was not in Europe after the Second World War. The Nazis behaved in Ukraine much more humane than the "fraternal Russian people" in Ukraine. After the liberation of the settlements, the Ukrainians see in each torture chambers and basements where they tortured, mocked and killed pro-Ukrainian citizens. Russian soldiers abuse and kill Ukrainians just for having in their homes or wearing attributes of Ukrainian statehood. The Russians are deliberately destroying hospitals, schools, plants and factories in Ukraine, everything that can serve the economic development of the country and the normal life of the citizens of Ukraine. Recently, attacks on thermal power plants, hydraulic structures, and other critical infrastructure facilities have become more frequent. In general, the Russian bulk kills and destroys everything in its path in Ukraine. Everything that can be stolen and taken out is stolen and taken out of Ukraine.

It is not Putin who does this, it is the fathers, brothers and sons of "innocent Russians" who ask to bring either the head of a Ukrainian, or a specifically stolen thing, or they are allowed to rape, just do not tell them, and so on.
The population of Russia not only did not protest against the war, but supported it by more than 70 percent. True, before the war began to concern almost every Russian after Putin announced mobilization. Therefore, in Russia there are no innocent people in the war against Ukraine, passivity is also complicity. And for this, all Russian citizens will have to pay for many subsequent generations.

[virasisog]

It won't do anything to Russia. Whether they ban almost every payment processor, they can't just regulate the incoming and outgoing payments that will come from them. How will they know if it's really from there? No one will know. We've seen that when payment processors have issued a warning of halting their operations in Russia, still, Russia has made some moves that make them individual and with its partner, China. So, no matter what they try to stop them, it will just make them more rely on their own and their alliances.

Russia has been well prepared for the possible sanctions especially when it comes to their online payment transactions. I think they will still be able to bear it since they always have alternative ways to deal with all the sanctions that might throw at them. When it comes to crypto, I don't think they can ban or even regulate transactions because we all know how blockchain payment works. I think they can still deal with these sactions without relying on their alliance countries.

[Oluwa-btc]

More sanctions for Russia but still no results coming forth. I want to ask what are the sanctions then for? Are this sanctions meant to frustrate Russia into accepting what the EU wants from then or are most of this sanctions meant to even aggravate the whole situation.

Yea punishment can be a solution but it is never a permanent one, the EU and other bodies has been on several sanctions on Russia for long now but not positive outcome, I think if the same energy put into all this is channeled towards a peaceful dialogue it would take time but it may bring the needed peace.

Russia is not cooperating with those peace talks, and the only way to fight them is with this sanctions and not to have another war because many countries can’t totally afford it. Banning crypto might not be a big one for Russia to concern with, but in long term this sanctions will be felt by Russia and hopefully by that time, the war already ended. If Russia will stop the war, these sanctions will stay for a while, we may not see the effect of this but eventually, Russia will fail. Let’s not hope that Russia will not escalate this war into a nuclear war, those sanctions may trigger Russia to do this but i hope EU are ready for that. 

I'm conclusion to what you have said, those sanctions imposed by European Union also would be difficult to lift especially when the war comes to an end one day eventually. It should take years before such are lifted. Russia will be on the lossing side if that happens in the future. Putin's quest for power is too obvious, I pray and hope this recent sanctions imposed doesn't results to Putin been triggered to use nukes. ( Nuclear Weapons )

[FriedeFritz]

Crypto cannot be banned, controlled, dismissed, or taxed effectively. That is only possible after crypto is converted to fiat, which I doubt the Russians intend to do.

Decentralization is the only solution that will allow billions of people to escape the state's tyrannical control over their economic lives. Congratulations; you are not a decentralized asset if you can separate your crypto by national origin.

[Gayong88]

But is it real sanction?

Is it really going to affect the crypto transaction for Russia or any entity involved if they are saying so?

If the EU maintains its stance and creates real financial sanctions for Russia, it may affect the crypto transactions of Russia or any entity involved as it is an important component of the global economy. However, in my opinion, it is too early to say. if yes it is only for those who use crypto currency for their work.

[Majestic-milf]

 The introduction of the eighth package by the EU doesn't seem much like a threat to the Russians. If my memory serves me right, I could remember they placed sanctions on Russia oil but these guys found a way out of it. I think the EU looks like they are running out of options by introducing these sanctions. Instead of having an effect, it still gives Putin the morale to do something more drastic.

 And as for crypto transactions being involved? One of the features on Bitcoin is that transactions can not be monitored by a third parties that's why it's preferred to bank transactions, so I doubt that should be an issue.

[Leviathan.007]

There are even more countries under financial sanctions from the USA and the EU but the most important thing and the question are how these financial sanctions affect these countries because we all know regarding Russia they were already aware of these financial sanctions and they were ready for it, also they can bypass the sanctions by using many methods like using china and other countries as a proxy to use the bitcoin and cryptocurrencies for their payments, I guess bitcoin cannot be used for their governments for the deals in big scale but still this can be helpful for them.

[Argoo]

I'm conclusion to what you have said, those sanctions imposed by European Union also would be difficult to lift especially when the war comes to an end one day eventually. It should take years before such are lifted. Russia will be on the lossing side if that happens in the future. Putin's quest for power is too obvious, I pray and hope this recent sanctions imposed doesn't results to Putin been triggered to use nukes. ( Nuclear Weapons )

Russia is unsuccessfully trying to find ways to win the war it started in Ukraine, as it suffers a military defeat on the fronts of Ukraine. Therefore, Putin and his entourage tried to scare the world with the use of nuclear weapons. In response, they received a rather harsh warning about catastrophic consequences for Russia from the United States and England, as well as a statement from Ukraine that even the use of nuclear weapons on its territory would not stop the resistance of Ukrainians. This cooled the Kremlin's desire to brandish a nuclear cudgel, and lately they no longer do it and declare that, according to the constitution, nuclear weapons can be used as a last resort, when there is a real threat to the existence of the Russian Federation as a state.

Putin has now changed tactics and has been launching massive rocket attacks on Ukrainian cities over the past few days, targeting the infrastructure that supplies civilians with electricity, heat and water. Moreover, Putin saw the support of such strikes from his own population and therefore does not hide the purpose of missile strikes on civilian critical infrastructure. However, this did not intimidate Ukraine and caused a lot of indignation on the part of the international community. Now the Kremlin is confused and they do not know what to do next.

[Fortify]

I am not sure what is the agenda here but if you read it closely then it seems that EU's now trying to cease the "settlements" that are being done in the crypto payments for whatever imports and exports that Russia might do/did and somehow they are trying to block the payment pathways so as to stop back doors as well.

However, as far as I understand crypto can't be stopped over a sanction because EU does not control the blockchain and neither they could track down whose payment it is and where is it going?

As long as the payment settler is an entity, registered organization and be involved in the payments directly or indirectly, I am sure they can do so as they will have all the companies domain information and tack them eventually.

But is it real sanction?

Is it really going to affect the crypto transaction for Russia or any entity involved if they are saying so?

In reality it is inevitable that cryptocurrency will get targeted more and more, because it's an easy way to grab headlines for politicians who want to enact further sanctions with little loss to most average people in their country. Along with headlines showing how North Korea is hacking and gathering billions worth of cryptocurrencies, which is being used to fuel large parts of their economy and even nuclear weapons program, this is not the last we will see of bans. Bitcoin's biggest asset is the level of anonymity and transparency that it gives, however that openness across the internet can also be it's major vulnerability for abusive people to transfer cash.

[Argoo]

More sanctions for Russia but still no results coming forth. I want to ask what are the sanctions then for? Are this sanctions meant to frustrate Russia into accepting what the EU wants from then or are most of this sanctions meant to even aggravate the whole situation.

Yea punishment can be a solution but it is never a permanent one, the EU and other bodies has been on several sanctions on Russia for long now but not positive outcome, I think if the same energy put into all this is channeled towards a peaceful dialogue it would take time but it may bring the needed peace.

It may be that last October the sanctions against Russia did not give the desired effect, but with each subsequent month, the pressure of these international sanctions in Russia is becoming more noticeable and tangible. A negative result from the imposed sanctions cannot have a lightning-fast effect, because in any state there are stocks of sanctioned goods in warehouses. But the sanctions are working inexorably. They are aimed at forcing Putin's Russia to stop military aggression against Ukraine and will gradually increase until the goal is achieved.

Yes, European countries also suffer materially from their own sanctions. However, they have already understood that if they do not help Ukraine in this way to defend its territory and independence, then tomorrow Russian tanks may invade their states. Therefore, certain material deprivations do not compare with what Ukrainians experience when their peaceful cities are bombed every day and women and children die every day.

[DrBeer]

The ban makes perfect sense! The terrorist country, having fallen under the pressure of sanctions, is trying to maintain the ability to interact with Western markets. the problem is that the full-fledged process of participation of the world terrorist country in the world market is very limited. The second problem is the huge drop in foreign exchange earnings. The hydrocarbon market in the EU is lost, "friends" such as India and China are "undressing" Russia, understanding its prospects and current state. Bans, sanctions, bankruptcy - that's all that destroys the totalitarian power of the Kremlin. And you need to look for an uncontrolled mechanism for generating income or buying the necessary goods and services, or withdrawing your assets from blocking. At the moment, cryptocurrency is very well suited for this role. And it is logical that this channel of "oxygen for breathing" is blocked by a suffocating world terrorist ...