The recent news that the European Union has approved its fifth round of sanctions against Russia has led to a lot of talk. Not only did the EU target the largest financial institutions in Russia, it also cut ties with ten of those same institutions. Despite these developments, however, it is still possible to support the military resistance of the country in the form of cryptocurrency donations. These are just some of the many reasons why cryptocurrency donation is the way to go right now.
European Union approves fifth package of sanctions against Russia
The EU has approved its fifth package of sanctions against Russia, announcing a new ban on Russian products. The EU also banned Russian companies from participating in public procurement in the EU. These sanctions target those who finance the Russian military's war effort in the eastern Ukraine. Belarusian road hauliers have also been barred from operating in the EU.
The new EU sanctions will be implemented after they are published in an official journal. Among the items that are targeted are Russian coal, wood, and vodka, as well as transferrable securities in the official currencies of the EU member states. The new measures will also be the first to target Russia's energy sector. However, the ban does not include a total ban on Russian fossil fuel imports. Further, EU sanctions against Russia will be implemented once they have been signed by all EU countries.
The EU is also considering imposing a ban on coal imports into the EU, a step that will inevitably lead to a prohibition on other energy sources in the future. The new sanctions will need the approval of the EU's member states, and many countries will resist adding gas to the list. Those countries who rely on Russian gas will probably balk at the idea, but the Kremlin pocketed 38 billion euros in gas and coal exports to the EU since the end of February.
Several European leaders visited Ukraine earlier this month, including President Charles Michel of the European Council. At a news conference with Zelenskiy, Michel expressed his support for the Ukrainian government. At the same time, he also visited the city of Borodyanka and declared the massacre there an atrocity and a war crime. In addition to Michel's visit to Ukraine, European Parliament President Roberta Metsola also paid a visit.
Russian sanctions against crypto wallets
Recently, the European Union issued its fifth set of sanctions against Russia, targeting crypto wallets. The new measures seek to close loopholes in existing restrictions by blocking access to high-value crypto-asset services. As a result, many people believe that Russia will continue to use crypto to circumvent sanctions. However, there are several other reasons for the sanctions. Here's what you need to know before you use cryptocurrency. Keeping your passwords safe is a top priority, and crypto wallets are one way to accomplish that.
While banks are obligated to follow "know your customer" regulations, platforms that facilitate crypto-to-crypto trading are not nearly as transparent. This means that Russian sanctions against crypto wallets will be much harder to enforce if these tools are used. The United States has issued its own warnings, but it may be wise to educate themselves on cryptocurrency technology and how it works to stay out of legal hot spots. In addition, Russia has multiple cryptocurrency tools in its arsenal - it only needs to figure out how to use them to trade without touching the dollar.
These measures could also prevent Russia from conducting evasive activities through its crypto wallets. They could also prevent financial institutions from seeing completed or attempted transactions tied to crypto wallets. According to FinCEN, the sanctions will affect only four Russian banks that account for around 23% of the country's bank market. As a result, there is a potential for money laundering to take place in the open, but unregulated world of crypto.
The DOJ recently announced its launch of Task Force KleptoCapture, an interagency law enforcement task force focused on enforcing sanctions and restrictions against Russia using cryptocurrency. The new initiative will focus on efforts to use crypto to circumvent the sanctions, launder proceeds of foreign corruption, and evade US responses to Russian military aggression. This new initiative is important for the Russian government and its citizens who store their wealth in cryptocurrency.
U.S. cuts ties with 10 largest Russian financial institutions
The decision by the U.S. Treasury Department to cut ties with 10 of Russia's largest financial institutions comes amid mounting tensions with the Russian government over human rights abuses. The list targets two banks - VEB and PSB - which are essential to the defense and economic development of Russia. These two banks collectively hold assets worth tens of billions of dollars. According to the Treasury Department, the move constrains Russia's ability to finance defense contracts and to raise new funds.
The United States has imposed economic and export controls on the three largest Russian financial institutions, and 34 subsidiaries. These sanctions impose strict financial and trade restrictions on these institutions, freezing their assets touching the U.S. financial system and preventing U.S. citizens from doing business with them. The three Russian financial institutions control more than 80 percent of Russia's banking assets, and the sanctions are also punishing the Russian political elite.
The Treasury has also imposed sanctions on Sberbank, one of Russia's largest banks. These sanctions target Sberbank's correspondent and payable-through account transactions with U.S. financial institutions. These measures halt the flow of funds from Russia into the U.S. financial system and prevent its clients from recovering any of their money. In addition to halting these transactions, the U.S. has also cut ties with Sberbank's 25 subsidiaries.
Ukraine solicits crypto donations in support of its military resistance against Russia
A non-government organization in Ukraine is soliciting donations in cryptocurrency to aid the fight against Russian aggression in the region. Come Back Alive claims to have received over $7.2 million in BTC in just two days. The donations were made in bitcoin, ether, and U.S. dollar-pegged stablecoins, including tether, a controversial crypto token that aims to peg to the U.S. dollar.
The Ukrainian government has launched a website to organize the fundraising efforts. The site explains that the country is now accepting donations in several cryptocurrencies, including the meme-inspired dogecoin. However, the website also accepts donations in fiat currency, in the form of traditional bank accounts. This allows Ukraine to make more purchases in cryptocurrency and convert some to fiat currency for supplies. Although the government will continue to work with local banks to process the payments, they will still accept crypto donations.
While Bitcoin is the preferred method of payment, cryptocurrency donation is a faster way to send money to Ukrainian armed forces. While bank wires can take several days to process, cryptocurrency transfers typically take less than half that time. While crypto has been a huge help to Ukraine's war effort, it has been a bumpy road. A few months ago, Ukraine's deputy minister for digital transformation had planned to issue a government cryptocurrency. The opposition forced the project to be suspended. Some people even minted fake versions of the government cryptocurrency and sold them.
Many cryptocurrency users have sent donations to the Ukrainian military and the popular nonprofit Come Back Alive, which provides resources to front-line fighters. Additionally, the Ukrainian National Bank has received the equivalent of almost $100,000 in foreign currencies in cryptocurrency. However, the amount of crypto donations is declining as time passes. However, the government hopes to continue soliciting more donations in the near future. The international support for the Ukrainian people's efforts is huge.
In the meantime, the government of Ukraine is also sending weapons and economic sanctions to Russia. Although there have been reports of scams on crypto donations to Ukraine, the government has remained silent. Nevertheless, many people are pitching in directly, indirectly, and online. And with the support of the U.S. government, American citizens can also participate in the humanitarian efforts. This is an excellent way to contribute without having to worry about the legal ramifications.