EU Gains Power to Cut Off Entire Countries from Crypto with Single Decision

The European Union has gained the power to cut off an entire country from cryptocurrency transactions with a single decision, thanks to its 21st Russia sanctions package.

This new framework does not immediately ban any country from crypto, but it gives Brussels the ability to restrict transactions between EU operators and providers in specific jurisdictions that host Russia-linked platforms.

The Council of the EU adopted the 21st sanctions package on July 23, 2026, which includes 218 designations, 48 individuals, and 170 entities. This package also extends transaction bans to 14 crypto-related service platforms operating across six jurisdictions: Georgia, Panama, the UAE, the Marshall Islands, Kyrgyzstan, and Belarus.

Chainalysis data shows that nearly $120 billion has been processed through the A7 network, which is targeted by the package. This new risk is geography-based, meaning EU firms must now consider where their counterparties are based and whether they operate in a jurisdiction that could be restricted by Brussels.