EU Cracks Down on Crypto Sanctions Evasion with Country-Level Ban

The European Union has expanded its Russia crypto sanctions to include 14 foreign service platforms and created a country-level transaction ban that could cut EU operators off from crypto providers in jurisdictions accused of repeatedly enabling sanctions evasion.

Under Article 5bc of amended Regulation (EU) No 833/2014, EU operators can be prohibited from dealing directly or indirectly with crypto-asset service providers or platforms enabling crypto exchanges or transfers when they are established in a listed third country.

Nick Turner, an economic sanctions specialist, described the measure as 'an important change in the EU's approach to secondary sanctions,' which can place pressure on entities outside the bloc because of their dealings with sanctioned parties.