EU eyes ban on foreign crypto services linked to Russia sanctions evasion

The European Commission has proposed sanctions on 20 non-EU entities, including crypto platforms, as part of a new package that could introduce the bloc’s first country-level ban on foreign crypto services linked to Russian sanctions evasion.

According to the European Commission, the proposed 21st sanctions package targets banks, oil traders, and cryptocurrency platforms that have allegedly provided services to sanctioned Russian individuals and entities. 

European Commission President Ursula von der Leyen said the measures are designed to close remaining channels used to bypass existing restrictions.

Under the proposal, transaction bans would be extended to the listed non-EU entities. In addition, the commission is seeking authority to prohibit crypto services originating from entire non-EU jurisdictions if those countries host platforms that help sanctioned Russian actors continue operating.

“It will act as a strong deterrent for the countries hosting platforms that help Russia evade our sanctions,” von der Leyen said.

Crypto platforms face growing sanctions scrutiny

The proposal arrives as regulators on both sides of the Atlantic increase pressure on crypto infrastructure they believe supports sanctioned states and illicit financial networks.

Chainalysis reported that illicit cryptocurrency addresses received $154 billion in 2025. The blockchain analytics firm also identified substantial activity linked to Russia, citing approximately $93.3 billion in transaction volume involving the ruble-backed stablecoin A7A5, which it said represented a significant portion of state-linked crypto activity.

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.

Russia prepares domestic crypto framework

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.