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EU clarifies that sanctions against Russia and Belarus also include crypto

Updated: Jul 25, 2024
Published: Mar 9, 2022
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The European Union (EU) has clarified that sanctions imposed on Russia and Belarus include cryptocurrencies.

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Sanctions against Russia & Belarus include crypto

According to the European Commission, crypto assets fall under the category of "transferable securities" and are therefore clearly included in the scope of sanctions imposed on Russia for its invasion of Ukraine and Belarus for its involvement. The statement also confirmed the general understanding that loans and credit can be provided by any means, including crypto-assets.

The EU also announced that it would extend existing financial restrictions on Belarus to match those already in place for Russia. These include restrictions on the provision of SWIFT services to three Belarusian banks and their subsidiaries, a ban on transactions with the Belarusian central bank, and a ban on listing securities related to shares in Belarusian state-owned companies on EU trading venues

Can Russia use crypto as a backdoor?

Last week, EU finance ministers and other officials discussed the move via video link as concerns grew that cryptocurrencies could be used as a backdoor for transferring money to and from Russia. At the time, many major crypto companies promised to respect the sanctions, but resisted calls for a blanket ban.

Some finance ministers had expected the commission to present new sanctions measures specifically targeting cryptocurrencies. However, EU officials pointed out that existing sanctions do enough and downplayed the risk of oligarchs using the crypto market to move their money.

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