In a historic first, the European Union has slapped sanctions on Russian cryptocurrency exchange Garantex, a key player in Moscow’s crypto market. The move stems from Garantex’s close ties to sanctioned Russian banks and its role in facilitating activities that threaten global financial stability.
This latest action solidifies a growing, unified international front against the exchange, which has already faced sanctions from the UK and the US.
The EU’s sanctioning of Garantex demonstrates a clear escalation, highlighting the severity of the concerns around the platform’s operations.
Are non-custodial wallets like Best Wallet and their token $BEST a solution to help investors mitigate risks associated with crypto trading—and is $BEST the best crypto to buy?
Garantex Scrutiny & Impact on Investors Point to Bigger Issues
Whilst this isn’t Garantex’s first rodeo against international sanctions, it is the first time that the EU has sanctioned a crypto exchange, marking a historic first.
In 2022, the US Treasury sanctioned Garantex for facilitating illicit transactions, anti-money laundering, and the counter-financing of terrorism deficiencies.
Simultaneously, Garantex lost its Estonian license following an investigation by the Estonian Financial Intelligence Unit.
In response to the Russian invasion of Ukraine in 2024, the US and UK imposed further sanctions on Garantex. Despite this, US officials raised questions about how to prevent the exchange’s attempts to circumvent them.
In fact, more recent sanctions arise from the concerns of the European Council (the official Council of the European Union) that the trading platform is getting all too familiar with avoiding their punishment
The EU’s sanctions mirror US and UK ones and involve asset-freeze restrictions, the prohibition of engagement in transactions with Garantex, and (in another EU crypto first) the listing of known blockchain wallet addresses connected to Garantex.
This is a significant step in combating illicit financial crypto flows from the exchange.
The imposed sanctions will restrict investor access to their funds, diminish their trading capacity, and severely disrupt Garantex’s operations, effectively undermining the exchange’s ability to operate.
Crypto Security in Exchanges – Insufficient Safety Guarantees?
Crypto is a volatile investment, with market trends changing rapidly. Investors approach the market in different ways, with some employing a short-term trading system and others invoking a HODLing (Holding On for Dear Life) approach, hoping for long-term gains.
The latest data from CoinMarketCap, shows that although in a current positive trend overall (a bull market), investors are experiencing recent market dips. This experience is evident, with notable highs and lows throughout the year.
Being a centralized exchange (CEX), Garantex offers convenience and ease of use. However, you relinquish control of your private keys and rely on their security measures to safeguard your funds.
But when the unexpected happens (like sanctions), your funds might be frozen.
Other risks include security breaches (like the Bybit hack), exchange failures, and the ever-present threat of regulatory uncertainty.
If you want more control over the security of your crypto, non-custodial wallets like Best Wallet are the safer bet. Even better if you can invest in a promising presale like the Best Wallet Token, which promises long-term gains.
Protection and passive income? Where do we sign up?
With advanced cryptographic techniques, multi-factor authentication, and biometrics, Best Wallet prioritizes the security of user funds—making its native token a strong contender for the best crypto to buy.
Currently standing at a token price of $0.024225 and an impressive total raised of $10.8M, $BEST demonstrates it continues to grow, even in the recent market dip. Rewarding investors with a dynamic 147% APY, Best Wallet continues to build on its good reputation and attract new investors.
Unlike centralized exchanges, non-custodial wallets like Best Wallet remain unaffected by events such as the recent Garantex sanctions, providing a safe haven for crypto assets.
Crypto is very volatile, and like with any investment, you run the risk of losing it all. Always do your own research before making any investments.
