Russian Crypto Exchange Garantex received full ledge action from the EU

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The EU has imposed full sanctions on Russian crypto exchange Garantex, blocking operations completely.

Garantex has been flagged to support authorized entities and raise concerns about illegal transactions.

Sanctions could increase market volatility amid ongoing economic challenges.

The European Union has taken a strong stance against the use of Russian digital assets by imposing full-scale sanctions on Garantex, the Russian cryptocurrency exchange. The move is part of the EU’s 16th sanctions package, which prevents Russia from using digital assets to bypass restrictions.

Garantex faces complete sanctions

For the first time, the EU Council has imposed full sanctions on Russia-based crypto exchanges. Already linked to Russian banks under EU sanctions, Garantex is currently completely restricting its activities within the European financial system.

The exchange has been flagged to promote transactions for individuals and entities already facing sanctions, making it a key player to bypass Russia’s international restrictions.

As Russia faces multiple economic penalties, digital assets have become an alternative way of moving funds across borders. The latest sanctions aim to block this potential loophole, preventing Russian financial networks from accessing the global crypto market.

How Garantex helped Russian shelters

Garantex has become an important platform in Russia, helping people turn the ruble into digital currency. This has made it an attractive option for those looking to move their funds internationally without resorting to traditional banking systems.

Garantex says it follows a self-regulatory policy, but international regulators have raised concerns about their involvement in transactions related to authorized Russian parties.

Garantex also operates cash exchange services both inside and outside Russia, allowing users to exchange Rubles for USDT. This raised an alarm that the exchange could be supporting financial activities that violate EU regulations.

Impact on the global crypto market

New sanctions prevent Russia from using platforms like Garantex for financial transactions. This has a major impact on the global crypto market, which is already facing challenges due to the recent economic crisis and ongoing hacking.

Markets that are still trying to recover could face more volatility as these sanctions become more severe.