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CoinPhoton
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EU considers blanket ban on crypto transactions with Russia
The European Union is weighing a ban on all crypto transactions with Russia in an effort to prevent Moscow from using digital assets to evade sanctions tied to the war in Ukraine, according to a document obtained by the Financial Times.
The proposed measures aim to block “copycat Russian crypto entities spun out of already sanctioned platforms,” which EU officials believe are being used to facilitate trading that supports Russia’s war efforts. The move is also intended to prevent the emergence of “heirs” to the Russian crypto exchange Garantex, which the EU sanctioned last year.
Kyrgyzstan could also be impacted. The EU is proposing restrictions on the export of certain dual-use goods and alleges that companies in the country have sold electronics and other items to Russia that can be used in drones and weapons. According to the document, imports of high-priority goods from the EU to Kyrgyzstan have surged nearly 800% since the war began, while exports from Kyrgyzstan to Russia have risen 1,200%, signaling a high risk of sanctions circumvention.
Blockchain intelligence firm TRM Labs previously reported that Garantex — along with Iran-based exchange Nobitex — accounted for more than 85% of inflows to sanctioned entities and jurisdictions in 2024. The United States has also sanctioned and redesignated Garantex, with the Treasury Department’s Office of Foreign Assets Control stating that most funds sent to the exchange originated from other crypto platforms linked to criminal activity.
The EU proposals would require unanimous approval from all 27 member states. However, according to the Financial Times, three countries have expressed reservations about the proposed ban.
The European Union is weighing a ban on all crypto transactions with Russia in an effort to prevent Moscow from using digital assets to evade sanctions tied to the war in Ukraine, according to a document obtained by the Financial Times.
The proposed measures aim to block “copycat Russian crypto entities spun out of already sanctioned platforms,” which EU officials believe are being used to facilitate trading that supports Russia’s war efforts. The move is also intended to prevent the emergence of “heirs” to the Russian crypto exchange Garantex, which the EU sanctioned last year.
Kyrgyzstan could also be impacted. The EU is proposing restrictions on the export of certain dual-use goods and alleges that companies in the country have sold electronics and other items to Russia that can be used in drones and weapons. According to the document, imports of high-priority goods from the EU to Kyrgyzstan have surged nearly 800% since the war began, while exports from Kyrgyzstan to Russia have risen 1,200%, signaling a high risk of sanctions circumvention.
Blockchain intelligence firm TRM Labs previously reported that Garantex — along with Iran-based exchange Nobitex — accounted for more than 85% of inflows to sanctioned entities and jurisdictions in 2024. The United States has also sanctioned and redesignated Garantex, with the Treasury Department’s Office of Foreign Assets Control stating that most funds sent to the exchange originated from other crypto platforms linked to criminal activity.
The EU proposals would require unanimous approval from all 27 member states. However, according to the Financial Times, three countries have expressed reservations about the proposed ban.
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