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EU Adds Country‑Level Crypto Ban to Russia Sanctions Toolkit

The new power lets the EU cut off dealings with crypto firms in states that fail to stop sanctions evasion.

Overview

  • The Council adopted the 21st Russia sanctions package on July 23, which extended traditional financial measures into crypto and added 218 listings overall.
  • The package imposed direct transaction bans on 14 non‑EU crypto platforms based in jurisdictions such as Georgia, Panama, the UAE, the Marshall Islands, Kyrgyzstan and Belarus.
  • Article 5bc was written into amended Regulation No 833/2014 to allow the EU to block all dealings with crypto‑asset service providers established in a third country that persistently tolerates sanctions evasion, but no country has yet been listed under the new tool.
  • From Aug. 25 the sanctions will widen prohibitions on Russian and Belarusian ownership, control and management roles in services covered by the Markets in Crypto‑Assets framework.
  • Analysts warn that a large MiCA authorisation gap in the EEA leaves many providers exposed to sanctions risks, raising the chance that enforcement will rely on behavior‑based screening, cross‑border supervisory coordination and diplomatic pressure rather than a single blanket ban.