Key Takeaways:
- The European Union is thinking about banning all cryptocurrency deals linked to Russia. Leaders believe Russia may be using digital money to avoid sanctions made after the Ukraine war started.
- A Russian crypto exchange called Garantex is already banned, and the EU is now watching new “copycat” platforms. The EU also wants stricter checks on crypto payments and trade with nearby countries like Kyrgyzstan.
- Trade numbers there have grown very fast, which raises concern. However, all 27 EU countries must agree before the new crypto ban can officially begin.
“CLOSE THE GATE, REGULATE, EU MOVES BEFORE IT’S TOO LATE!”
Is the European Union Closing the Crypto Loophole for Moscow? TRM Labs, a blockchain research firm, released a report in 2024. It claimed that over 85% of the cryptocurrency money entering sanctioned organisations and nations came from Garantex and another Iranian exchange, Nobitex. This raised serious concerns for global regulators.
EU Steps Up Pressure On Russia
The European Union (EU) is thinking about taking stronger steps against Russia’s use of cryptocurrency. The EU may outlaw any cryptocurrency transactions connected to Russia, according to a Financial Times story.
The primary objective is to avoid Russia from avoiding sanctions associated with the conflict in Ukraine by using digital currency.
Since the war began, many Western countries have put strict rules on Russia. These rules are called sanctions. They make it hard for Russia to use banks, send money through global payment systems, and trade with other countries.
Because of this, some officials believe that certain Russian groups may be using cryptocurrency to move money in secret and continue business.
Banned Exchange, New Names – Same Risk?
One crypto exchange being closely watched is called Garantex. It is a Russian crypto platform. Both the EU and the United States have already placed sanctions on it.
US officials have said that a lot of the money going through Garantex came from exchanges connected to illegal activities.
Now, EU leaders are worried about new crypto companies. They call them “copycat” groups. These are new platforms that may have started from old ones like Garantex, which is already banned.
These new groups may have different names, but they may be doing the same kind of work. The EU wants to stop them early, before they grow bigger and help Russia avoid the rules.
Stricter Checks On Crypto Payments
The new plan would also mean stricter checking of crypto payments. The EU may stop European companies from working with crypto services linked to Russia. Leaders are also looking at trade in nearby countries, like Kyrgyzstan.
Since the war started, trade numbers there have gone up very fast. Some officials think this could mean that goods are being sent to Russia through other countries to avoid sanctions.
But the plan is not final yet. All 27 EU countries must agree before the new rules can start. Reports say that at least three countries are unsure about fully banning crypto deals with Russia. So, talks are still going on.
Conclusion
Is this the start of a big crypto crackdown in Europe?
If the new rules are approved, they will be one of the strongest steps taken against the misuse of cryptocurrency. The EU wants to close all gaps in the system.
It also wants to stop new crypto exchanges from replacing the ones that are already banned. The next few weeks are very important. EU countries will talk and decide whether to move ahead with the full crypto ban.
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