What to know:
- EU plans sanctions on 20 foreign banks, traders, and platforms.
- Chainalysis linked significant Russia-related activity to illicit crypto transactions globally.
- Russia advances domestic crypto regulations while the EU expands restrictions.
European Commission President Ursula von der Leyen has proposed new sanctions targeting foreign cryptocurrency platforms accused of helping Russia bypass existing financial restrictions. The measures form part of the European Union’s 21st sanctions package and could introduce country-level bans on crypto services from jurisdictions that host such platforms.
The proposal expands the EU’s efforts to block financial channels that sanctioned Russian entities may use outside traditional banking systems. Moreover, the package targets several non-EU businesses that continue providing services to individuals and organizations already subject to restrictions.
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New restrictions aimed at foreign service providers
According to the European Commission, transaction bans would extend to 20 non-EU entities. Those entities include banks, crypto platforms, and oil traders that have reportedly maintained business relationships with sanctioned Russian parties.
Von der Leyen said the Commission is also considering a broader restriction targeting countries that host platforms facilitating sanctions evasion. Consequently, governments that fail to address such activities could face wider limitations on crypto-related services.
She stated that the measure would serve as a deterrent against jurisdictions that continue providing operational space for platforms linked to sanctions avoidance.
EU seeks to close crypto-related sanctions loopholes
The proposed measures arrive as regulators increase scrutiny of digital asset networks used for cross-border transactions. European officials believe stronger enforcement tools are necessary to prevent sanctions circumvention through alternative payment channels.
Chainalysis recently reported that illicit cryptocurrency addresses received $154 billion in 2025. The blockchain analytics firm noted that Russia-linked transactions accounted for a significant share of state-associated crypto activity.
Additionally, Chainalysis highlighted the growing use of A7A5, a ruble-backed stablecoin that processed approximately $93.3 billion in transaction volume. The token has become one of several crypto assets attracting regulatory attention because of its connection to Russian financial activity.
Earlier this year, blockchain research firm Elliptic identified five cryptocurrency exchanges that allegedly facilitated sanctions evasion. According to Elliptic, those platforms provided financial pathways that operated outside traditional banking oversight. Regulators outside the European Union have also taken action. Last month, the United Kingdom’s Financial Conduct Authority sanctioned HTX, formerly known as Huobi Global, over allegations that it supported the Russian government.
Russia advances domestic crypto framework
Meanwhile, Russian authorities continue developing a domestic regulatory framework for digital assets. The framework is expected to launch in July and would establish licensed cryptocurrency trading platforms within the country.
Beyond crypto-related restrictions, the 21st sanctions package broadens pressure on Russia’s energy and trade sectors. The proposal includes measures targeting additional oil vessels and introduces restrictions on Russian fisheries for the first time.
Von der Leyen said existing sanctions continue to weaken the economic foundations supporting Russia’s war effort. The latest package places foreign crypto platforms among the primary targets of the EU’s next round of enforcement measures.
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