The G7 And European Union Issue New Crypto Sanctions On Russia

The U.S. with other G7 countries, and the European Union, have issued further sanctions on Russia, with a key component to Russia using crypto as a means to circumvent existing sanctions.

Several governments in the West have announced their increased focus on preventing virtual assets from being used to circumvent the sanctions imposed on Russia.

Member nations of the Group of Seven (G7) – the U.S., U.K., France, Canada, Japan, Italy, and Germany, with the European Union, announced new sanctions aimed to “collectively ramp up pressure on Putin and build on the unprecedented package of economic sanctions and export controls the United States and over 30 countries have already imposed on Russia.” 

One of the main purpose of the newly announced sanctions is to double down on efforts to minimize crypto’s potential as a means to evade sanctions. 

According to a statement, the participating nations commit to ensure the sanctions remained in effect by reducing evasion and loop-holes. The statement detailed:

“We will ensure that the Russian state and elites, proxies and oligarchs cannot leverage digital assets as a means of evading or offsetting the impact of international sanctions, which will further limit their access to the global financial system.”

The group said it would crank up efforts to improve detection and interdiction of illicit activity, imposing costs on the illegal use of digital assets by Russians. 

The White House issued a fact sheet to emphasize the measures taken against Russia, which “require all U.S. persons to comply with sanctions regulations regardless of whether a transaction is denominated in traditional fiat currency or virtual currency.”

The U.S. Treasury has also confirmed its commitment to exercising its “broad enforcement authorities” against violators.