EU Considers Tighter Restrictions on Russia-Linked Crypto Transactions

The European Union is considering expanding restrictions on cryptocurrency transactions linked to Russia, aiming to prevent digital assets from being used to bypass sanctions related to the war in Ukraine.

According to a document obtained by the Financial Times, the proposal targets “copycat” platforms that resemble previously sanctioned exchanges in structure and operations. EU officials believe these entities may continue facilitating transactions under new names.

Blockchain analytics firm TRM Labs previously reported that a large share of funds flowing into sanctioned jurisdictions in 2024 was connected to platforms such as Garantex.

The document also highlights concerns over third-country involvement, noting increased trade between Kyrgyzstan and Russia that may pose risks of sanctions circumvention.

The proposal includes the possibility of a broader ban on crypto transactions between the EU and Russia, potentially extending compliance obligations to service providers.

The measures would require unanimous approval from all 27 EU member states. Some countries have expressed reservations, leaving room for possible revisions.