The EU is significantly expanding pressure on Russia – and now fully includes cryptocurrencies in it. The European Commission presented a package of measures targeting crypto exchanges, decentralized platforms, and digital assets linked to the Russian economy. The reason is clear: Moscow, according to Brussels, is increasingly using cryptocurrencies to circumvent international sanctions.
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Complete ban on transactions with Russian crypto services
The new sanctions package introduces a blanket ban on trading with any Russian cryptocurrency service provider. The measure applies not only to centralized exchanges but also to decentralized platforms (DeFi), which enable anonymous or difficult-to-trace transactions.
According to the European Commission, this is a response to a growing trend where Russia is shifting part of its international financial operations to crypto. In this case, digital assets are meant to serve as an alternative to the traditional banking system, which is significantly restricted due to sanctions.
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Stop for ruble stablecoins and digital currency
The measures also include a ban on using stablecoins pegged to the Russian ruble. Specifically mentioned are assets like A7A5, which can serve as a tool for cross-border payments outside the oversight of traditional institutions.
The European Union has also banned the use of the planned digital currency of the Russian central bank (CBDC). The digital ruble was meant to be one of the tools for circumventing restrictions in international payment systems. Its deployment now faces another geopolitical barrier.
Cryptocurrencies as a tool for evading sanctions
The European Commission in its statement points out that Russia is relying on cryptocurrencies more and more. This was one of the key drivers for tightening the rules.
“Every additional day of Russian attacks on Ukrainian civilian infrastructure means another day of suffering for the Ukrainian people,” the Commission stated, adding that the aim of the measures is to increase pressure on Russia and force it to negotiate under conditions acceptable to Ukraine.
The package was also developed following a meeting between European Commission President Ursula von der Leyen and Ukrainian President Volodymyr Zelensky, who discussed further EU support in the context of the ongoing war.
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Impact beyond Russia: crosshairs on allies
The sanctions are not limited to Russia alone. The EU also mentions entities linked to Belarus and other actors who may help circumvent restrictions. Cryptocurrencies are thus ceasing to be a “neutral” tool and are increasingly becoming the center of geopolitical tensions.
Iran and global exchanges under scrutiny
Similar concerns are emerging outside Europe. In the United States, recent weeks have seen discussions about whether Iran might be using cryptocurrencies to circumvent sanctions in connection with military tensions in the Middle East.
Major crypto exchanges are also coming under regulators’ scrutiny. For example, Binance reportedly faced internal problems after information emerged about transactions worth up to one billion dollars linked to Iranian entities.
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