EU targets crypto wallets in latest round of Russia sanctions

The European Union released their fifth package of sanctions on Russia on Friday. The new sanctions are targeting crypto wallets, banks, currencies and trusts in order to close potential loopholes which could allow Russians to move money abroad.

Following Russia's invasion of Ukraine on February 24, EU-based crypto exchanges were already required to apply sanctions that bar transactions from targeted individuals, but there were concerns that loopholes remained.

The EU will be extending the prohibition to deposits to crypto-wallets.

"This will contribute to closing potential loopholes", the EU's executive European Commission stated on Friday.

Furthermore, the EU is also banning the sale of banknotes and transferable securities, such as shares, denominated in any official currencies of EU member states to Russia and Belarus.

There will be a full transaction ban on four Russian banks, including VTB. VTB covers 23% of market share in the Russian banking sector.

Lastly, there is now also a ban on advising on trusts for wealthy Russians, to make it more difficult for them to store their wealth in the EU.