- Russians are set to be banned from sending cryptocurrencies in wallets tied to EU entities
- The new measure is being considered as part of a new sanctions package following Russia’s planned annexation of parts of Ukraine
- However, holders of coins in non-custodial wallets will not be impacted
Russians are set to be banned from sending cryptocurrencies from wallets registered to EU companies in accordance with a new raft of sanctions. Coindesk has learnt that the European Union plans to tighten restrictions on Russians’ cryptocurrency investments within the bloc as a means of punishing the “sham” independence votes being held in Russian-occupied regions of Ukraine. However, such a ban will not affect those holding coins in non-custody wallets, which are outside of governmental control.
10,000 Euro Limit to be Brought to Zero?
The EU has acted swiftly in condemning Russia’s ongoing annexation of occupied territories in Ukraine with a set of new sanctions, and, as we have come to expect in such matters, cryptocurrency access is part of this. Coindesk reports that the existing cap of sending 10,000 euros in crypto per transaction will be scrapped, potentially meaning Russians won’t be able to send any assets in wallets tied to EU entities.
This cap was brought in in April to stop digital assets being used to bypass restrictions on large bank transfers, but the new measures could now see that figure reduced to zero. Any such measures are yet to be agreed by EU member states, but the strength of the language coming from EU leaders suggests that this is the least that will be considered.
Non-custodial Wallets Not Impacted
Of course, those with anything more than a superficial knowledge of crypto will know that decentralised non-custodial wallets are not geographically linked in any way, meaning that anyone with assets already on such a wallet, including popular software wallets like Metamask or any hardware wallet, will be free to move their coins around.
This means that any such moves to limit or even scrap cryptocurrency movements of Russian nationals will not impact holders of these wallets, although cashing out may prove more problematic.