EU proposes ban on transactions at 11 crypto platforms

The European Commission has proposed banning transactions on 11 crypto platforms as part of its 21st sanctions package against Russia. The measures form part of a wider plan targeting banks, weapons manufacturers, oil traders, refineries and other entities outside the EU.

Kaja Kallas, vice president of the European Commission and the EU’s high representative for foreign affairs and security policy, wrote on X: “We will also tighten our ban for crypto-asset services to certain third countries, add new designations, and ban transactions on 11 crypto platforms.”

The proposal would expand sanctions beyond traditional banking and energy channels to include crypto firms that the Commission believes have helped sanctioned Russian individuals and networks evade restrictions tied to the war in Ukraine. European Commission President Ursula von der Leyen noted the package would add 31 Russian banks and 20 entities in third countries, including banks, crypto platforms and oil traders, on the grounds that they had serviced sanctioned actors or helped circumvent EU measures.

The Commission has not publicly identified the 11 crypto platforms named in the proposal. Officials have provided no further detail, and the names and specific legal measures are expected to be clarified as the package advances through EU decision-making and member states reach agreement.

The proposed package follows action by the United Kingdom on May 26, when UK authorities sanctioned Huobi Global S.A., the Panamanian company linked to the HTX exchange, citing grounds to suspect support for Russia-linked financial networks. UK authorities said the company had been connected to services and funds linked to sanctioned entities. HTX has denied those allegations and said the sanctioned entity is separate from the online exchange.

Research and compliance specialists have warned that exchange-level sanctions can freeze legitimate users and make it harder to trace illicit funds. They caution that designating entire platforms may capture ordinary customers and reduce the effectiveness of analytic tools used to follow transactions through complex networks.

If adopted, the measures would bar certain transactions with the designated platforms by EU persons and entities and could include asset freezes and restrictions on providing services. The package also targets companies involved in the production and supply of military equipment and expands restrictions on revenue streams previously addressed, including energy exports. Regulators say digital assets can be used to move value across borders and obscure identities and activity, which informs the inclusion of crypto platforms in the sanctions list.

Further legal and technical details, including the identities of the named crypto platforms and the exact prohibitions, will be published when the Council of the European Union finalizes the package. EU member states must agree on the designations before the measures enter into force.