European Union lawmakers have proposed making all cryptocurrency transactions with Russian entities illegal to strengthen sanctions against Russia. This measure aims to prevent Russia from circumventing sanctions through the use of cryptocurrencies such as Bitcoin and Ethereum, which have gained global popularity for financial transactions. Due to their decentralized and semi-transparent nature, cryptocurrencies pose a risk of being exploited to violate sanctions, particularly by Russia in response to Western penalties. Under this proposal, individuals and institutions across EU member states would be prohibited from engaging in transactions involving crypto accounts or assets linked to Russian parties. This is expected to tighten financial restrictions on Russia and increase pressure on its economy. The initiative seeks to enhance the global enforcement of economic sanctions designed to limit Russia’s involvement in regional conflicts. If approved by the European Parliament, it would mark a significant step toward increased regulation and oversight of cryptocurrency use within the EU. However, the decentralized and international nature of cryptocurrencies presents challenges in enforcement and monitoring, and such measures could also introduce uncertainty into the crypto market.
Source: decrypt
