EU Plans Total Ban on Crypto Transactions with Russian Entities
Lawmakers in the EU are advancing a proposal to prohibit any EU person or entity from using cryptocurrency to transact with Russian counterparties, describing the measure as a step to tighten sanctions enforcement. The draft language targets direct and indirect transfers and would compel exchanges, custodial services and other intermediaries to block or freeze transactions linked to sanctioned Russian actors.
The move raises immediate operational and legal questions for the crypto industry: exchanges and payment firms would face higher compliance burdens, while decentralized protocols, peer‑to‑peer trades and privacy‑enhancing tools could become enforcement blind spots. Observers caution the ban may push sanctioned activity onto non‑custodial rails or foreign platforms, complicating enforcement even as the EU signals a firmer stance on financial restrictions related to Russia.