EU proposes first country-level crypto ban on Russia sanctions evasion

Earlier this year, blockchain research firm Elliptic identified five crypto exchanges that it said provided financial pathways used to bypass sanctions while operating outside traditional banking oversight.

Recent enforcement actions have already targeted several crypto businesses accused of supporting sanctioned networks. In May, the United Kingdom sanctioned Huobi Global S.A., which authorities linked to HTX, over allegations that it provided services to the Russia-connected A7 network. The UK government imposed asset freezes, payment restrictions, internet service sanctions, and other measures against the company.

Elliptic said the UK action represented the first use of Regulation 17A against a cryptoasset exchange, extending restrictions on correspondent banking relationships and payment processing involving designated entities.

Across the globe, the U.S. Treasury in June designated four Iranian cryptocurrency exchanges, Nobitex, Wallex, Bitpin, and Ramzinex, alleging they helped sanctioned entities access the digital asset ecosystem. Treasury officials said cryptocurrency services had become part of Iran's efforts to move funds outside traditional financial channels.

While European authorities move toward tighter restrictions, Russia is preparing a comprehensive cryptocurrency regulatory framework expected to be introduced in July.

The planned rules would establish licensed domestic trading platforms, creating a regulated structure for local crypto activity as international scrutiny of Russia-linked digital asset flows continues to increase.

Outside the crypto sector, the European Commission's latest package also seeks to tighten pressure on Russia's energy and trade sectors. Proposed measures include additional restrictions on oil vessels and the first sanctions targeting Russian fisheries.

"Our sanctions keep biting hard and cutting deep; they are weakening the economic foundations of Russia's war effort," von der Leyen added.