The European Union has hit Russia with its largest round of sanctions in four years, and crypto platforms are a major part of the target list for the first time in this way. The Council of th
The European Union has hit Russia with its largest round of sanctions in four years, and crypto platforms are a major part of the target list for the first time in this way.
The Council of the EU adopted its 21st sanctions package on July 23, listing 218 individuals and entities, 48 people, and 170 organizations, marking the biggest batch of new listings since the sanctions program began.
The package targets Russia's energy sector, financial services, and crypto infrastructure that has allegedly helped Moscow work around existing restrictions.
Related: Popular exchange sued within hours of its shutdown announcement
Alongside the individual listings, the EU imposed asset freezes on 94 banks and financial institutions.
But the most significant development is a new legal tool: for the first time, the EU can now impose a full transaction ban on crypto-asset service providers based in a third country, rather than sanctioning platforms one at a time.
Using that new power, the EU immediately banned transactions with 14 crypto-related service platforms based in Georgia, Panama, the United Arab Emirates, the Marshall Islands, Kyrgyzstan, and Belarus. These jurisdictions have reportedly become hubs where sanctioned entities route transactions to avoid detection.
Until now, sanctioning crypto platforms tied to Russia has largely meant targeting individual exchanges or wallets one at a time, a slow process that sanctioned entities could often work around by simply moving to a new platform.
A country-level ban changes that dynamic entirely, since it can cut off an entire jurisdiction's crypto service providers in one action rather than chasing individual platforms as they emerge.
EU foreign policy chief Kaja Kallas framed the package as a direct response to Russia's continued war in Ukraine, tying the sanctions to the broader goal of cutting off funding sources that keep the war effort running.
The move signals that regulators are increasingly treating crypto infrastructure as a serious vector for sanctions evasion, not just a niche corner of the financial system, and are now willing to build entirely new legal tools to close those gaps.
Related: Treasury Secretary Bessent unveils fresh sanctions in Iran crackdown
