Switzerland will add a sanction to Russia in the cryptocurrency environment. The suspension of digital currency accounts will impact citizens and entities sanctioned by the EU.
The Swiss Ministry of Finance revealed that it would suspend the assets of Russian citizens and bodies on regulated crypto exchanges in that nation. American media Financial Times spoke about the situation in a recent report.
According to the report, the Swiss Federal Council applied the move as a sanction that will be part of those already implemented within the framework of the financial punishments used by the European Union (EU) on Russia for a military incursion in Ukraine.
Although Switzerland does not have membership in the EU and has a solid political stance based on neutrality, last week, the Swiss nation showed interest in matching the package of economic punishments applied by Brussels on Moscow.
Finance Minister Guy Parmelin explained that Switzerland applied the four sanctions packages from the European bloc. On the other hand, since last Monday, bank accounts and assets in Switzerland, belonging to 223 Russian citizens, got frozen.
Various comments aimed at a senior Finance Ministry official highlight that this move would be vital for Switzerland to expand economic sanctions on Russia towards crypto-asset trading.
The spokesperson highlighted that it would be impossible to block funds in self-custodial wallets. If a user has a cryptographic key, it would not be possible to discover its identity. But if they apply crypto services, officials can detect these service points.
Switzerland has sustained its stance as a favorable country to develop works based on digital currencies since 2016. Even the canton of Zug was one of the first territories to accept tax payments with bitcoin and other digital assets. This Friday, news got spread about the Swiss city of Lugano and its desire to become a European Bitcoin City.
Switzerland also became part of the Financial Action Task Force regulations, applied to the cryptocurrency industry. This bill arrives with dubious instructions, like sharing users’ personal information with the government and with the administration of other countries in the region.
Europe Might be Fractured
Europe is going through harsh times. The EU and the UK are still managing the negative sequels that Brexit left when it happened. The whole European territory is still fighting against the Covid-19 pandemic. Germany counts on a new chancellor named Olaf Scholz. Its new government is still trying to set up a robust foreign policy to deal with massive migrations and other relevant situations.
Along with other European nations, Germany gets fed from Russian natural gas, and energy prices might skyrocket soon. On the other hand, France would celebrate elections in April, and French President Emmanuel Macron wishes to play an essential role in this event.
By: Jenson Nuñez
