EU Extends Sanctions to 14 Crypto Exchanges in Bid to Block Russian Evasion

The European Union (EU) has widened its sanctions against Russia by banning 14 cryptocurrency platforms, including Justin Sun-owned HTX and BitPapa. The platforms targeted are based in various countries, including the UAE, Panama, Georgia, the Marshall Islands, Kyrgyzstan, and Belarus.

According to the EU Council, these platforms have been used as conduits for blocked Russian entities to move funds and bypass existing sanctions. The transaction ban prohibits EU persons and firms from doing business with these crypto platforms.

The inclusion of HTX on the sanctioned list is significant, given that it was previously banned by the UK in May. To counter possible freezing of funds, HTX moved its reserves to an unknown third party and has been switching hot wallets, making it difficult to conduct sanction screening.

Experts believe that this move signals a shift in how regulators view platforms' role in sanctions enforcement. The EU's new ability to ban offshore platforms or entire regional blocs will likely become an effective regulatory pressure.