In what it describes as its most comprehensive sanctions effort in two years, the European Union (EU) has enacted extensive measures against Russia, including significant restrictions on cryptocurrency. The EU’s April 23 statement highlights a complete ban on crypto providers and platforms established within Russia.
“Russia is increasingly turning to cryptocurrencies for international transactions,” the EU noted. “To counter this, we are imposing a total sectoral prohibition on Russian-established providers and platforms facilitating crypto asset transfers and exchanges.”
Additionally, the sanctions extend to Russia’s central bank digital currency (CBDC), specifically targeting the ruble-pegged RUBx stablecoin and halting all EU support for its development.
The measures also target 20 Russian banks along with four third-country financial institutions connected to the Russian System for Transfer of Financial Messages (SPFS), according to a report by Chainalysis. The blockchain intelligence firm further mentioned that TengriCoin, a Kyrgyz crypto exchange operating under Meer.kg, was sanctioned due to its involvement in trading substantial amounts of the government-backed stablecoin A7A5.
This action follows years of intensified enforcement against the Garantex–Grinex–A7A5 ecosystem, which Chainalysis has extensively monitored. The firm reported that A7A5 processed $119.7 billion to date, serving as a bespoke settlement system for linking sanctioned Russian businesses with the global financial network.
“These new restrictions establish a comprehensive crypto ban across Russia and Belarus,” Chainalysis stated.
The sanctions prevent EU residents from engaging in transactions with cryptocurrency service providers (CASPs) and decentralized finance (DeFi) platforms based in Russia and Belarus. Additionally, they are prohibited from offering Markets in Crypto-Assets Regulation (MiCA) services to Belarusian individuals and entities. The EU also clarified that netting transactions involving Russian agents is now prohibited, aiming to prevent the evasion of its sanctions.
The package implicates several countries for their roles in financial services, trade flows, or intermediary activities, specifically naming Kyrgyzstan, China, the United Arab Emirates, Uzbekistan, Kazakhstan, and Belarus.