The European Union has taken a strong position against the use by Russia of digital assets by imposing full-fledged sanctions on the exchange of Russian cryptocurrency, Guarantx. This decision is part of the sixteenth pack of EU sanctions, which prevents Russia from using digital assets to get around the restrictions.
Guarantx faces complete sanctions
For the first time, the EU council imposed complete sanctions on an exchange of Russian crypto. Guarantex, which has links with Russian banks already under EU sanctions, is now completely limited to operating in the European financial system.
The exchange has been reported to facilitate transactions for individuals and entities being already confronted with sanctions, making it a key player in Russia’s efforts to circumvent international restrictions.
With Russia faced with multiple economic penalties, digital assets have become another way to move funds across borders. The last sanction aims to cut this potential escape, preventing Russian financial networks from accessing the global cryptography markets.
How Guarantex helped Russian dodge sanctions
Guarantx has become a key platform in Russia, helping people transform rubles into digital currencies. This has made it an attractive option for those who seek to move funds internationally without counting on the traditional banking system.
While Guarantx says that it follows self -regulation policies, international regulators have raised concerns about its involvement in transactions linked to actors sanctioned in Russia.
Guarantx also manages cash exchange services inside and outside Russia, allowing users to exchange rubles for the USDT. This has brought alarms that the exchange could help financial activities that go against EU regulations.
Impact on the global cryptography market
With new sanctions, Russia can no longer use platforms such as Guarantsex for financial transactions. This will have a great effect on the global cryptography market, which already faces challenges in the recent economic crisis and current hacks.
The market, which is still trying to recover, can face more volatility in advance as these sanctions are tightening.
