The European Union adopted its 19th sanctions package against Russia, introducing restrictions on cryptocurrency platforms for the first time since the war in Ukraine began.
The measures, adopted Thursday, prohibit Russia-based crypto payment providers and the distribution of related payment software across the bloc. The sanctions also target Russian energy firms, banks, and entities in China, Kyrgyzstan, Tajikistan, Hong Kong and the United Arab Emirates accused of helping Moscow evade previous restrictions.
“We have just adopted our 19th package of sanctions,” said Kaja Kallas, the EU’s high representative for foreign affairs and security policy. “It targets Russian energy, banks, crypto exchanges, and entities in China, among others. The EU is also regulating the movements of Russian diplomats to counter attempts at destabilisation.”
Nineteenth package of sanctions against Russia. Source: European Council
Related: Privacy is ‘constant battle’ between blockchain stakeholders and state
EU sanctions Russian ruble-backed A7A5 stablecoin
According to the European Council, Russia has increasingly turned to digital assets to bypass financial sanctions.
“Recent activity has evidenced Russia’s increasing use of crypto in circumventing sanctions,” the council said on Thursday.
The package includes a bloc-wide ban of the A7A5 ruble-backed stablecoin, which EU authorities described as “a prominent tool for financing activities supporting the war of aggression.”
This included a prohibition on the Kyrgyz issuer of the stablecoin and the operator of an unidentified digital asset platform where “significant volumes” of A7A5 were traded.
At least eight banks and oil traders from Tajikistan, Kyrgyzstan, Hong Kong and the United Arab Emirates are also subject to a transaction ban for circumventing EU sanctions.
The EU proposed blocking Russian crypto platforms on Sept. 19, followed by discussions to ban the A7A5 stablecoin.
Related: Swiss banks complete first blockchain-based legally binding payment
Russian oil companies have reportedly used cryptocurrencies like Bitcoin (BTC) and Tether’s USDt (USDT) to circumvent sanctions, conducting tens of millions of dollars in monthly payments, Reuters reported in March, citing anonymous sources.
In July, two Russian citizens residing in New York were charged with facilitating payments for sanctioned Russian entities.
Iurii Gugnin, also known as George Goognin and Iurii Mashukov, was charged with 22 criminal counts, including the laundering of over $540 million through his crypto companies, Evita Investments and Evita Pay.
Magazine: Bitcoin is ‘funny internet money’ during a crisis: Tezos co-founder