EMEA Daily: Ukraine Revokes Licenses of Russian Banks Sberbank, VEB; European Parliament Indefinitely Delays Crypto Reg Vote

In today’s top Europe, Middle East and Africa (EMEA) news, Russia’s financial services were further handicapped when the National Bank of Ukraine revoked the licenses and liquidated the assets of two Russian banks; and the European Parliament postponed its vote on a proposed regulatory package for cryptocurrency assets.

Plus, the Polish government and the nation’s payment clearinghouse have experienced more cyberattacks recently; Russia’s sanctioned banks said they have enough liquidity to meet client demand; and the booming outsource tech sector from the Ukraine is at risk following the Russian invasion.

Ukraine Revokes Licenses of Russian Banks Sberbank, VEB

Aside from dealing with banking sanctions from United States, European Union and British leaders, Russia’s financial services were further handicapped when the National Bank of Ukraine (NBU) revoked the licenses and liquidated the assets of two Russian banks. Sberbank is the largest financial institution in Russia, and VEB finances the state’s national economic development. The sanctions also include subsidiaries of the banks — JSC International Reserve Bank, which is 100% owned by Sberbank, and PJSC Joint Stock Commercial Industrial Investment Bank.

European Parliament Indefinitely Delays Crypto Reg Vote Slated for Monday

The European Parliament has indefinitely pushed off its vote on a proposed regulatory package for cryptocurrency assets. The move followed a leaked draft version of the proposal. It was criticized for including a provision that would ban cryptos’ use in the EU because of energy concerns.

Poland Expects More Cyberattacks on Government Platforms

The Polish government and the nation’s payment clearinghouse have experienced more cyberattacks recently, the federal chief of cybersecurity said. In a broadcast on Polskie Radio, the country’s public service radio broadcasting organization, Janusz Cieszynski said law enforcement had not identified the source of the attacks.

Russian Banks Say They Can Weather Sanctions

Russia’s sanctioned banks have said that they have enough liquidity to meet client demand and are working to make it through the crisis. The banks issued a joint statement, noting there were no restrictions on their ATMs or branches. The announcement came one day after sweeping sanctions were imposed by the U.S. and several other nations in response to Russia’s invasion of Ukraine.

Ukraine’s Tech Outsourcing Sector Plunges Amid Russian Occupation

The booming outsource tech sector in Ukraine is at risk following the Russian invasion. As troops invaded the Eastern European country, internet outrages were widespread, according to the Georgia Institute of Technology, which monitors internet access.

From the US and EU to Russia, Crypto Money Laundering Is Under Attack

All eyes may have been on Ukraine this week. But in major worldwide economies, crypto’s use as a tool for money laundering tool came under renewed attack as prosecutors and politicians used criminal charges to fight the flow of dirty money through blockchains. The U.S. Department of Justice announced two guilty pleas in its prosecution of the leaders of the BitMEX cryptocurrency derivatives exchange for ignoring anti-money laundering (AML) regulations. The EU reportedly plans to give its new bloc-wide AML agency oversight of crypto.

Russia Remains on SWIFT Over Fears of New Payments System

The EU and the U.S. are formally signing off on sanctions against Russia in response to President Vladimir Putin’s decision to invade Ukraine, but the penalties stop short of booting Russia from the global SWIFT payments network. Russia’s removal from SWIFT would sever it from most international financial transactions, including its profit center of oil and gas production. It accounts for more than 40% of the country’s revenue.

War in Ukraine Poses First Big Test for Bitcoin as a Haven in Times of Crisis

It’s hard to argue that the case for bitcoin as a store of value that, like gold, provides a hedge against inflation has been badly battered in recent months. Having plummeted as much as 50% in the past three months, the price of bitcoin has led to a broader cryptocurrency sell-off as the Federal Reserve began making it clear that a series of rate hikes were coming this year as it targeted inflation in the wake of 40-year highs.