EU Moves to Ban All Crypto Transactions with Russian Entities: Report
The European Commission is proposing an EU-wide ban on all crypto transactions with Russia to strengthen sanctions and prevent sanctioned Russian crypto service providers from circumventing restrictions by rebranding. The ban would prohibit any EU-based individual or entity from transferring cryptocurrencies to or from Russia-based counterparts, aiming to address the ease with which blacklisted crypto firms have evaded enforcement. The proposal also includes banning certain dual-use goods exports to Kyrgyzstan, as the country is seen as a route for sanctions circumvention, notably via the A7 network and its ruble-pegged stablecoin A7A5, involved in tens of billions of dollars in illicit flows. While experts agree such a comprehensive ban could improve enforcement by targeting high-risk networks rather than specific entities, challenges remain, including ongoing circumvention through intermediaries and the need for stronger regulatory enforcement. Three EU member states have expressed concerns about the measures, which must be approved unanimously. Despite expanded crypto-related sanctions in the past, officials stress the need for tightening rules and enhanced supervision to address evolving evasion tactics.
