EU sanctions 11 crypto platforms in 21st Russia package

The sanctions regime now layers additional obligations on top of the EU's Markets in Crypto-Assets regulation. MiCA established a licensing and compliance framework for crypto service providers operating in the EU. The 21st package effectively adds a sanctions-screening mandate to that baseline.

When the EU says it is going after 11 crypto platforms but does not say which ones, every platform with any conceivable Russian exposure has to wonder if it is on the list. No specific cryptocurrency platforms or tokens have been publicly identified in relation to these new sanctions, leaving ambiguity for market participants, several compliance officers said.

The third-country dimension adds another layer. Platforms based outside the EU that process transactions involving sanctioned entities now face expanded compliance obligations. For crypto platforms operating in jurisdictions like Nigeria, where some of the sanctioned activity has allegedly occurred, this could mean difficult choices about which markets to serve.

Beyond crypto, the package also introduces restrictions on Russian vessels and expands the list of sanctioned banks and related entities to approximately 90. The package introduces the potential for broader prohibitions targeting third-country providers of crypto-asset services.

EU foreign ministers are expected to formally adopt the package within days.