The crackdown extends to third-country banks in Kyrgyzstan, Laos, and Tajikistan that facilitate Russian crypto services, barring them from transacting with EU entities.
Russia moved this week to tighten domestic control over digital assets, passing legislation in a third reading that sets procedures for freezing and confiscating cryptocurrency.
Now the EU is taking a tougher stance, as Brussels is preparing sanctions meant to choke off Russia’s access to crypto rails used to move value across borders.
The EU is finalising its 20th sanctions package, expected to be adopted on Feb. 24, and is seeking to “ban all cryptocurrency transactions with Russia,” the Financial Times reported Tuesday.
An internal European Commission document cited by the Financial Times argues that sanctioning specific crypto firms has been easy to evade because new providers can be set up to replace those that get listed.
Banning All Transactions With Russia
It generally looks like the Commission’s approach is broader this time because the document calls for prohibiting engagement with any crypto-asset service provider established in Russia and blocking the use of platforms that enable the transfer or exchange of crypto assets tied to Russia.
The package is also set to expand traditional financial sanctions. European Commission President Ursula von der Leyen said last week the measures would target 20 additional Russian regional banks and several banks in third countries.
Reuters reported Monday that the EU has proposed sanctioning two Kyrgyz banks, Keremet and OJSC Capital Bank of Central Asia, along with banks in Laos and Tajikistan. If approved, those institutions would be barred from transactions with EU individuals and companies.
One focus of the crypto crackdown may be Russia-linked payments platform A7 and its ruble-pegged stablecoin, A7A5. A7 has denied facilitating sanctions evasion. Data from CoinMarketCap and DefiLlama indicates A7A5 grew quickly in 2025 among non-dollar stablecoins, though analysts have questioned the reliability of its reported activity.
As Crypto News Australia reported, the EU is also advancing with its Digital Euro, with ECB President Christine Lagarde stating the bank has finished its technical and preparatory work.
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