The European Union has taken a strong stance against Russia’s use of digital assets by imposing full-fledged sanctions on the Russian cryptocurrency exchange, Garantex. This move is part of the EU’s sixteenth package of sanctions, which prevent Russia from using digital assets to bypass restrictions.
Garantex Faces Complete Sanctions
For the first time, the EU Council has imposed full sanctions on a Russian-based crypto exchange. Garantex, which has ties to Russian banks already under EU sanctions, is now completely restricted from operating within the European financial system.
The exchange has been flagged for facilitating transactions for individuals and entities already facing sanctions, making it a key player in Russia’s efforts to work around international restrictions.
With Russia facing multiple economic penalties, digital assets have become an alternative way to move funds across borders. The latest sanction aims to cut off this potential loophole, preventing Russian financial networks from accessing global crypto markets.
How Garantex Helped Russian Dodge Sanctions
Garantex has become a key platform in Russia, helping people turn rubles into digital currencies. This has made it an attractive option for those looking to move funds internationally without relying on the traditional banking system.
While Garantex says it follows self-regulation policies, international regulators have raised concerns about its involvement in transactions linked to sanctioned actors in Russia.
Garantex also runs cash exchange services inside and outside Russia, letting users swap rubles for USDT. This has raised alarms that the exchange may be helping in financial activities that go against EU regulations.
Impact on the Global Crypto Market
With new sanctions, Russia can no longer use platforms like Garantex for financial transactions. This will have a big effect on the global crypto market, which is already facing challenges from the recent economic crisis and ongoing hacks.
The market, still trying to recover, may face more volatility ahead as these sanctions tighten.
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