The European Commission has proposed banning all cryptocurrency transactions with Russia, aiming to prevent Moscow from using digital assets to bypass traditional sanctions. The measure would prohibit engaging with any crypto asset service provider or platform established in Russia, effectively cutting off transfers and exchanges linked to Russian entities. It reiterates that anti-circumvention rules are a focus, warning that listing new platforms could be used to sidestep existing restrictions.
Brussels’ package also targets the Russia-linked crypto scene by focusing on the development of heirs to the Garantex exchange, which the US sanctioned in 2022 for operating as the exchange of choice for cybercriminals. The Commission’s proposal signals a broader push against Russia-linked crypto infrastructure, including the A7 payments platform and the connected A7A5, a rouble-pegged stablecoin.
Data from blockchain analytics firm Elliptic shows the A7A5 stablecoin’s transaction volume exceeded $100 billion, underscoring the scale of crypto activity in sanctions circumvention. While the Commission pushes hard to constrain Russia’s use of crypto, several member states have expressed doubts and asked for more information before endorsing the package, which itself requires unanimous approval.
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