The European Union’s Council has approved the twelfth set of economic and personal sanctions against Russia, which specifically target the ownership and management of cryptocurrency companies. The aim of these measures is to prevent any attempts to bypass existing international sanctions. According to an official statement from the European Parliament, Russian citizens are prohibited from owning, controlling, or holding any positions in the governing bodies of entities involved in providing cryptocurrency services. This ban also extends to operators of cryptocurrency wallets and digital asset custody services.
In addition to these restrictions, the new sanctions require a mandatory notification for any funds transferred outside of EU countries by legal entities in the EU that are controlled, either directly or indirectly, by more than 40% by Russians or entities in Russia.
Once published in the Official Journal of the European Parliament, these new measures will come into effect immediately. As a result, ATAIX Eurasia, a licensed cryptocurrency exchange in Kazakhstan, has asked its Russian users to close their accounts by December 15th. The company cited the EU sanctions as the reason for ceasing services to Russians, which includes individuals residing in Russia and legal entities registered in the country.