EU Grants Itself Power to Ban Crypto Ties Amid Sanctions Evasion Concerns
The Council of the EU has expanded its authority to ban crypto sector ties in an effort to prevent sanctions evasion. On July 23, the council adopted its 21st sanctions package against Russia, giving it the power to prohibit cryptocurrency dealings that facilitate such activities.
The new regulation identifies 14 cryptocurrency platforms across six jurisdictions as potential enablers of sanctions evasion, emphasizing the need for compliance adaptations in the sector. The Kremlin-backed A7 network has reportedly transferred over $90 billion, heightening the urgency for compliance within the crypto sector.
The designation of specific platforms signals a proactive approach to curbing illicit financial flows and protecting the integrity of the European financial system. This move could reshape how cryptocurrency exchanges operate within the EU and beyond.