The EU discusses a comprehensive ban on cryptocurrency transactions related to Russia

The European Commission is considering a comprehensive ban on cryptocurrency transactions related to Russia. The proposal is being discussed as part of a new round of sanctions aimed at strengthening oversight of digital asset use under existing financial restrictions.

According to European media reports, the proposal would restrict transactions involving Russian crypto platforms and their counterparties, and revise relevant rules governing European infrastructure and interactions with such entities. Currently, these measures are still in draft form: they must be approved by all EU member states to become official.

The EU’s sanctions mechanism also extends to the digital asset sector: European crypto service providers face restrictions in certain areas when providing services to Russian clients. In this context, the discussed measure may represent an escalation of current restrictions.

European authorities believe that digital assets could be used to bypass traditional banking systems for cross-border settlements. Although blockchain transactions are transparent, the decentralized nature of these tools increases the difficulty of implementing standard financial regulatory mechanisms. For this reason, Brussels has been gradually strengthening regulation of the crypto industry, integrating it into a broader sanctions policy framework.

If the proposal is approved, European crypto service providers will need to further assess how they handle transactions related to Russia. This could impact compliance practices, customer due diligence procedures, and cross-border transaction processing.

Currently, no final decision has been made on the proposal. If approved, these restrictions will become part of the EU’s broader sanctions framework, which is increasingly encompassing traditional financial instruments and digital asset infrastructure.