EU Gives Council Power to Ban Crypto Services from Designated Countries

The European Union (EU) has introduced a new mechanism to prohibit cryptoasset services from designated third countries, giving the Council unprecedented power. The move is significant as it implies that even firms with sound controls could be affected.

This shift in policy comes within the EU's 21st sanctions package, which introduces a new mechanism for the Council to prohibit EU firms from engaging with cryptoasset services based in named third countries. The country list is currently empty, meaning no immediate restrictions are in place, but the Council can add countries through a simple decision.

Elliptic's VP of Policy and Regulatory Affairs, David Carlisle, notes that this change serves as a deterrent, and companies should be prepared for potential repercussions. Compliance with these new powers will be critical, especially for firms with existing ties to affected regions.