EU adopts largest sanctions package in four years, targeting Russian crypto and banks

The European Union on Thursday adopted its 21st package of sanctions against Russia, targeting cryptocurrency exchange HTX among 14 third-country crypto platforms accused of helping Moscow evade Western financial restrictions. The package, the bloc's largest in four years with 218 designations, marks a turning point in international efforts to close digital loopholes in the sanctions regime.reuters+2

Crypto Crackdown Escalates

The EU Council's adoption of the package follows weeks of contentious negotiations among member states and builds on a proposal unveiled by European Commission President Ursula von der Leyen on June 9. The measures impose transaction bans on the listed crypto platforms — including HTX, formerly known as Huobi — rather than full asset freezes, prohibiting EU entities from conducting business with them.united24media+3

For the first time, the package also creates a legal basis allowing the EU to impose a blanket ban on crypto-asset services from entire third countries deemed to be facilitating sanctions evasion. European Council President António Costa said the measures target "the sectors with the highest impact: energy, financial services, crypto, and trade."globalbankingandfinance+2

HTX had already faced similar action from the United Kingdom, which designated the exchange on May 26 under its Russia sanctions regime. The UK government accused HTX of channeling approximately $1.5 billion to Kremlin-aligned entities as part of what British authorities called the "A7 Network" — a cluster of 18 crypto exchanges, banks, and individuals facilitating Russian sanctions circumvention.amlintelligence+3

Broader Financial Measures

The crypto restrictions form one pillar of a far-reaching package that also imposes full asset-freeze sanctions on 94 Russian financial institutions, transaction bans on 33 additional Russian banks including SWIFT disconnection, and a 12-month freeze on the Russian oil price cap at its current level. The package adds 41 vessels to the sanctioned shadow fleet and introduces the EU's first-ever fisheries sanctions against Russia.srnnews+3

EU foreign policy chief Kaja Kallas Euronext N.V. said in June that the bloc would "tighten our ban for crypto-asset services to certain third countries" and warned that the new authority would "serve as a strong deterrent for countries hosting platforms that facilitate Russia's evasion of our sanctions."reuters+1