A press release shared by the European Council on Monday, June 24, 2024, revealed significant developments in EU regulations aimed at monitoring transactions involving cryptocurrencies and digital assets, such as NFTs.
The EU Council spokesperson, Daniela Lenzu, presented the updated regulation, highlighting the political reasons behind it, stating that “The Council today adopted a 14th package of economic and individual restrictive measures, delivering another blow to Putin’s regime and those who perpetuate his illegal, unprovoked, and unjustified war of aggression against Ukraine.”
Although the European Council’s governmental restrictions came as no surprise to many, they were met with curiosity and apprehension by European crypto investors, eager to know the identity of the banned crypto providers. In this article, we offer an overview of the imposed sanctions to clarify some of the emerging questions that arose after the press release circulated.
Imposed Restrictions
Monday’s announcement revealed that the restrictions imposed by the council cover several target areas, including the energy, technology, and transportation sectors, financial support for political parties, import and export of various products, and intellectual property rights. Understandably, the most concerning part of the new regulation for crypto investors was related to financial transactions involving a wide range of platforms.
The new restrictions make it illegal to trade digital assets with “financial institutions and crypto asset providers” that are not based in the EU and have contributed to the financing of Russia’s military industry. The sanctions currently prohibit transactions with 2,200 crypto providers. This includes transactions made through these platforms with any cryptocurrency, from well-known ones like Bitcoin, Ethereum, Solana, and Shiba Inu, to emerging stars like Cronos.
Implementation of Restrictions
The restrictive measures imposed by the European Council this week represent not only the EU’s stance in defending Ukraine but also its commitment to regulating cryptocurrencies. Although symbolically expressive in both commitments, the feasibility and strategies adopted for implementing these sanctions were not explained in detail.
It is clear, however, that the crypto scene is now an important part of Europe’s political and economic life. European investors looking for safe and reliable crypto providers can count on the Kraken platform, which offers a wide variety of cryptocurrencies.
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