Publication
EU sanctions package 12 – a complete ban on Russian participation in the ownership or management of crypto companies
The EU has introduced a new sanctions package aimed at limiting the circle of persons who can hold senior positions or own crypto companies registered in the EU and the European Economic Area. In the article we will look at the key aspects of this package of sanctions, we will figure out who is not subject to restrictions and what to do for those who are already running a cryptocurrency business or are just planning to open one.
From 18 January 2024, Russian citizens are prohibited from directly or indirectly owning, controlling or holding positions in the governing bodies of a legal entity or body registered or established in an EU Member State providing wallet, account or custody services for crypto assets.
The 12th sanctions package does not apply to persons who have citizenship or a temporary/permanent residence permit in one of the EU countries, the European Economic Area (Austria, Belgium, Bulgaria, Czech Republic, Denmark, France, French Guiana, Greece, Guadeloupe, Croatia, Estonia, Iceland , Italy, Ireland, Cyprus, Lithuania, Liechtenstein, Luxembourg, Malta, Martinique, the Netherlands, Norway, Poland, Portugal, Reunion, Romania, Slovakia, Slovenia, Finland, Spain, Hungary, Germany, Sweden) or Switzerland.
It is important to note that having a second citizenship is not always sufficient. If a person who has citizenship of a country outside the EU has not renounced Russian citizenship, then in order to occupy a leadership position in a crypto company or manage it, an employee or entrepreneur must have a residence permit from an EU member state.
The consequences of failure to comply with the new conditions for existing crypto companies can be extremely dire: license revocation, liquidation of the company and further financial sanctions against the company. However, this does not mean the need to urgently close crypto companies with Russian managers.
For those entrepreneurs who already manage or own crypto companies in the EU area, we recommend contacting Antwort specialists to develop an action plan.
We advise those entrepreneurs who are now planning to open crypto companies to apply for crypto licenses and company registration in Asian countries, or review the business ownership/management structure.
We are already accustomed to the fact that the world of cryptocurrency is constantly changing. In such conditions, it is especially important to find a partner who takes on the legal side of running a business. Antwort specialists confidently declare: the key to a stable international business is a reliable provider of legal services.
Vladyslav Makarenko
Managing Partner
Antwort Law
Actual Services
FAQ
What restrictions does the new EU sanctions package impose on individuals managing or owning crypto companies in the EU and the European Economic Area?
The new sanctions package, introduced from January 18, 2024, prohibits Russian citizens from directly or indirectly owning, controlling or holding positions in the governing bodies of legal entities or bodies registered or established in an EU Member State providing crypto asset services.
Who is not subject to the restrictions of the EU sanctions package?
Persons who have citizenship or a temporary/permanent residence permit in one of the EU countries, the European Economic Area or Switzerland are not subject to sanctions. It is important to note that having a second citizenship is not always sufficient, and to occupy a management position in a crypto company or manage it, a residence permit in an EU member state may be required.
What are the consequences of non-compliance with the new conditions for existing crypto companies in the EU?
Failure to comply with the new conditions may result in serious consequences, including license revocation, company liquidation and financial penalties. However, closing crypto companies with Russian managers is not the only solution. It is recommended to contact specialists to develop an action plan or review the business ownership/management structure.