New crypto sanctions imposed by the European Union are likely to boost the development of the country’s digital asset market, according to a Russian lawmaker. Anatoly Aksakov, chairman of the Parliament’s Financial Markets Committee, believes the Russians will manage to get around the restrictions. Meanwhile, major exchanges have informed Russian users that trading is still continuing.
The Russians find a way to prevent the imposition of crypto sanctions in Europe, members of the Duma Insist
This week, EU adopted child Their eighth package of penalties against Russia, which targets its government, economy and energy exports in response to the recent escalation of the military conflict in Ukraine and the annexation of Ukrainian territories . Russia’s access to cryptocurrencies, seen as a tool to bypass financial restrictions and export wealth, has also been targeted.
The Council of the European Union has completely banned the provision of cryptocurrency wallet services, accounts and custody services to residents and institutions of Russia. However, according to a senior member of the Russian parliament quoted by Tass news agency, the EU’s decision could actually stimulate the development of Russia’s digital financial assets (DFA) market.
The opinion was spoken by Anatoly Aksakov, head of the Financial Markets Committee in the State Duma, the lower house of the Russian Parliament. He has been deeply involved in recent efforts to regulate the country’s crypto space, including the use of digital currencies in international settlement. Authorities in Moscow have been discussing the issue for more than a year and are considering expanding the regulatory framework that currently includes most DFAs with an issuer, such as a token.
The latest round of EU sanctions tightens previously imposed restrictions. Earlier this year, as part of fifth pack Measures adopted just over a month after Russia launched its invasion of Ukraine, the strong 27th block limits “high value” crypto asset services to Russians and registered entities of Russia – those for digital holdings in excess of 10,000 euros in fiat value (about $11,000 at the time, less than $10,000 now).
Binance, Huobi Comments on Latest EU Sanctions, No New Restrictions Now
“Similar decisions have been made before. They have closed the official representative offices of their crypto exchanges in Russia, but practically nothing has changed. It is also possible to have an office in cyberspace, not at some address in Moscow,” added Anatoly Aksakov, emphasizing that the Russians can easily bypass sanctions.
Although the world’s largest cryptocurrency exchange, Binance, partially complied with the previous EU requirements, allowing withdrawals only in case the Russian account balance exceeds 10,000 euros, it is now has informed users that it is not introducing new restrictions, Bits.media revealed in a report. Another major platform, Huobi, said it “continues to support stable trading of Russian users.”
Among the top seven crypto exchanges popular with Russians, including Bybit, Coinbase, FTX, Kraken and Gate.io, none are “European residents” for whom these measures will be mandatory, Russian crypto news outlet noted. Russian crypto experts, like the CEO of defi banking platform Indefibank, Sergey Mendeleev, doubt that most crypto companies will rush to implement the EU resolution targeting all Russian users as this will lead to loss of position in the market.
“Moreover, these limitations stimulate the development of modern technologies. Next year will be the year of digital financial assets in Russia, you will see,” Aksakov promised. His comments come as delegates in the State Duma prepare to pass a new law “On Digital Currencies” designed to regulate decentralized crypto assets such as bitcoin and the employment of them in cross-border crypto payments between Russian companies and their foreign counterparts.
Do you think the latest EU sanctions will speed up the legalization of cryptocurrencies in Russia? Share your thoughts on this topic in the comments section below.
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