EU Weighs Total Ban on Crypto Transactions Involving Russia
EU policymakers are debating a proposal to prohibit all crypto transactions involving Russian entities, saying a comprehensive ban would close loopholes that arise when regulators single out particular platforms. The move is framed as a sanctions enforcement measure intended to curb illicit finance and stem the use of decentralized rails to bypass restrictions. If adopted, exchanges, custodians, and payment providers serving EU customers would face expanded compliance duties or legal exposure.
The proposal raises practical and legal questions: how to identify counterparties on-chain, apply rules to peer-to-peer transfers and privacy coins, and coordinate enforcement with non-EU jurisdictions. Market participants warn the ban could push activity to unregulated venues and increase operational friction for legitimate users, while supporters argue it sends a stronger message against sanctions evasion. Stakeholders will be watching for a formal legislative text and guidance on implementation and carve-outs.