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

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.

New rules allow the EU to block crypto providers across countries that repeatedly fail to prevent Russia sanctions evasion, giving the bloc authority to target entire third countries if they determine that jurisdiction has systematically failed to stop platforms from providing services that help Russia bypass sanctions.

The restrictions on Russian and Belarusian ownership and control of EU crypto firms will expand from August 25, covering MiCA-regulated services including crypto advice, portfolio management, and transfers carried out on behalf of customers.