Key facts
- The EU proposed its 21st sanctions package against Russia, including bans on 11 crypto platforms.
- The measures target entities accused of helping Russia evade sanctions.
- The EU may also impose a country-level ban on crypto services from nations aiding sanctions evasion.
- The UK previously sanctioned HTX (formerly Huobi Global) for alleged support of Russia-linked financial networks.
The European Union has proposed its 21st sanctions package against Russia, which includes banning transactions on 11 crypto platforms and potentially imposing a country-level ban on crypto services from nations aiding sanctions evasion. European Commission President Ursula von der Leyen stated that the package targets entities, including banks and crypto platforms, that have serviced sanctioned Russian individuals and entities or helped circumvent EU measures.
The proposed measures follow the UK's May 26 sanctions against HTX (formerly Huobi Global) for alleged support of Russia-linked financial networks. UK authorities cited reasonable grounds to suspect HTX facilitated financial services and funds through sanctioned entities like A7 Limited Liability Company and Garantex. HTX has denied these allegations, stating the sanctioned entity is separate from the exchange. Reports indicate HTX processed significant high-risk crypto flows, with a substantial portion linked to Russian high-risk entities and darknet markets.
Blockchain researchers have warned that broad exchange-level sanctions could impede legitimate users and compliance tools. The EU's move aims to deter countries hosting platforms that facilitate Russia's evasion of sanctions imposed over its war in Ukraine. Beyond crypto, the package also targets Russia's energy and trade sectors, including blacklisting Russian fisheries for the first time.