The European Union has unveiled another package of sanctions to regulate crypto activity in Russia, proposing a blanket ban on transactions involving the country. The measures aim to close perceived loopholes used to circumvent traditional banking sanctions, including the explicit hedging of the digital ruble.
The European Union’s new sanctions package against Russia sought to substantially broaden the scope of restrictions in the crypto sector. The proposal aimed to prohibit all transactions between EU entities and cryptocurrency service providers linked to Russia, including exchanges and spin-off platforms created to circumvent previous measures. The text explicitly included transactions related to the Central Bank of Russia’s CBDC and contemplated adding 20 additional Russian regional banks to the blacklist.
The focus was not limited to actors within Russia, as Brussels also targeted financial institutions in countries such as Kyrgyzstan, Laos, and Tajikistan, suspected of facilitating sanctions evasion. For the first time, the EU proposed activating anti-circumvention powers to restrict exports of dual-use goods to transit jurisdictions. EU documents indicated that, since the start of the war, Kyrgyzstan saw an 800% increase in imports from the EU and a 1,200% increase in exports to Russia, figures that raised concerns about potential trade triangulation.
The report included concrete examples of operational adaptation within the Russian crypto ecosystem. Following US sanctions against the Moscow-based exchange Garantex, a successor platform, Grinex, emerged, reportedly processing billions before facing its own restrictions. Regulators also highlighted the intensive use of stablecoins, including a ruble-pegged token, A7A5, which reportedly accumulated over $100 billion in transactions.
Prohibitions continue, and crypto activity in Russia is dwindling
While a blanket ban strengthens the political message and formal deterrence, decentralized liquidity, peer-to-peer trading, and censorship-resistant DEXs complicate enforcement.
The EU’s own data reflects this dynamic. Between 2024 and 2025, flows to sanctioned actors through centralized exchanges fell by around 30%, while decentralized and high-risk channels saw an increase of over 200%. This suggests that regulatory pressure can alter capital flows without necessarily reducing its total volume.
In this context, the package places particular emphasis on stablecoin issuers and the so-called “chokepoints” of the digital financial system. Coordination with regulators in third countries and with issuing companies is emerging as a key component for closing operational gaps. The legal signal is powerful, but its success will depend on continuous monitoring and the ability to adapt to new evasion structures.
Ultimately, the effectiveness of the package will depend on the EU’s ability to monitor stablecoin gateways, pressure facilitators outside the bloc, and evolve its enforcement tools in response to emerging decentralized finance vectors.
