Ukraine closes cryptocurrency loopholes used by Russia to circumvent sanctions

Ukrainian President Volodymyr Zelenskyy has enacted a decision by the National Security and Defence Council that will strengthen sectoral sanctions against Russia's financial sector, extending restrictions to cryptocurrency services, digital financial assets and other platforms that can be used to circumvent sanctions.

Source: President's Office

Details: The sanctions apply to operators of digital trading platforms, cryptocurrency services, financial platforms and clearing organisations.

Transactions involving virtual assets and the use of platforms, services or products that enable operations with financial and virtual assets are also prohibited.

Some provisions of the decision reflect the approaches used in the EU's 19th and 20th sanctions packages against Russia. Ukraine has gone further, introducing broader restrictions that also cover all virtual assets tied to the Russian rouble.

Background: Ukraine introduced sectoral sanctions against Russia's financial sector in February 2023 for a period of 50 years. The sanctions cover banks, non-banking credit institutions, payment system operators, stock market participants, insurance companies and investment funds registered or located in Russia.

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