In a historic first, the European Union has imposed sanctions on Russian cryptocurrency exchange Garantex, a notable player in Moscow’s crypto market. The decision arises due to Garantex’s close connections with sanctioned Russian banks and its involvement in activities that pose threats to global financial stability.
This latest move signifies a unified international stance against the exchange, which has already encountered sanctions from both the UK and the US.
The EU’s sanctioning of Garantex clearly illustrates the growing concerns around the platform’s operations, marking an escalation in measures taken against cryptocurrency exchanges linked to illicit activities.
Garantex Scrutiny & Impact on Investors Point to Bigger Issues
This is not Garantex’s first encounter with international sanctions, but it is the first instance of the EU sanctioning a cryptocurrency exchange.
In 2022, the US Treasury placed sanctions on Garantex for facilitating illicit transactions, citing deficiencies in anti-money laundering operations and the counter-financing of terrorism measures.
At the same time, Garantex lost its Estonian license following scrutiny from the Estonian Financial Intelligence Unit.
Following the Russian invasion of Ukraine in 2024, the US and UK imposed additional sanctions on Garantex. Nonetheless, US officials raised concerns regarding the exchange’s ability to circumvent these sanctions.
The recent sanctions highlight the European Council’s growing concerns about Garantex’s capacity to evade punishment, as noted in their latest announcements regarding the organization.
The EU sanctions align with those from the US and UK, encompassing asset-freeze provisions, the prohibition of transactions with Garantex, and listing specific blockchain wallet addresses associated with the exchange.
This decisive action represents a significant attempt to curb illicit financial flows through Garantex.
The sanctions will restrict investor access to their funds, diminish their trading capacity, and substantially disrupt Garantex’s operations, effectively undermining the exchange’s functionality.
Crypto Security in Exchanges – Insufficient Safety Guarantees?
The cryptocurrency market is known for its volatility, with rapid shifts in market trends. Investors approach the landscape in various ways, be it short-term trades or a HODLing strategy, bent on securing long-term appreciation.
Presently, statistics from CoinMarketCap suggest that, although the market is on an uptick overall (a bull market), investors have witnessed recent fluctuations that underscore the unpredictable nature of crypto investments.
As a centralized exchange (CEX), Garantex provides convenience and ease of use. However, users relinquish control over their private keys, becoming reliant on the exchange’s security protocols to safeguard their assets.
Unexpected events, such as sanctions, may lead to the freezing of funds.
Additional threats encompass security breaches (exemplified by the Bybit hack), exchange failures, and pervasive regulatory uncertainties.
For those seeking enhanced control over the security of their cryptocurrency, non-custodial wallets like Best Wallet provide a more secure alternative. Investing in a promising presale, like the Best Wallet Token, could also yield significant long-term benefits.
Protection and passive income? Count me in!
Best Wallet employs cutting-edge cryptographic techniques, multi-factor authentication, and biometric security to prioritize user fund security, making its native token a strong candidate for potential investment.
Currently valued at $0.024225 with a remarkable total of $10.8M raised, the $BEST token continues to flourish despite recent market fluctuations. Offering an enticing 147% APY, Best Wallet is well on its way to solidifying a strong reputation and attracting new investors.
In contrast to centralized exchanges, non-custodial wallets like Best Wallet are insulated from events such as the recent sanctions against Garantex, providing a safe harbor for cryptocurrency assets.
Recognizing that cryptocurrency investment comes with inherent risks, and the possibility of total loss exists, it is crucial for investors to conduct thorough research before committing to any investments.
