Switzerland will freeze Russian crypto funds

Switzerland will freeze Russian crypto funds 2

Switzerland took a strict step against the properties of the Russian people, which also includes crypto assets, in its border.

Around 10 days ago Russia started its fight against Ukraine. Due to this action of Russia, EU & US agencies imposed financial sanctions on Russia to isolate it from the global economy. 

Switzerland is known as a neutral country but strangely it joined the EU sanctions order against Russia and decided to freeze the funds of the people belonging to Russian localities. 

According to a published report by the Financial Times, Switzerland freezed funds & properties of more than 223 Russian people last week. Freeze and seized properties including physical assets and bank accounts. 

In 223 Russian people, few people were much closer to the associates of Russian President Putin. 

However, the cryptocurrencies seizure was not part of EU sanctions but Switzerland included crypto assets funds also as additional sanctions. 

An official person citing this matter closely told the Financial Times that seizure of cryptocurrency-based properties was necessary because Switzerland wants to protect the integrity of its blockchain industry.

On Wednesday of this week, the EU officially announced its plan for Cryptocurrencies, so that Russia may not go with the use of cryptocurrencies to invade the financial sanctions. 

Bruno Le Maire, Finance Minister of France, stated:

“We are taking measures, in particular on cryptocurrencies or crypto assets which should not be used to circumvent the financial sanctions decided upon by the 27 EU countries.”

Besides all these things, Switzerland officials explained that there are many challenges to these plans because there are many things, which are not in favour of our restrictions because people can hold their crypto assets in self custodial wallets, and technically it is impossible for any agency to control or seize their funds. 

“If someone holds their crypto key themselves then, wherever they are, it’s going to be virtually impossible…..(..)…if they are using crypto services—funds, exchanges, and so on—these service points we can target.”

Read also: Bank of Russia showing strict stances on crypto despite financial sanctions