The European Union is set to incorporate cryptocurrency platforms into its latest financial sanctions against Russia, marking the first occasion where digital asset services have been specifically targeted.
The actions, part of the bloc’s 19th sanctions package, prohibit all cryptocurrency transactions involving Russian residents and limit interactions with foreign banks associated with Russia’s alternative payment systems, according to a statement released by European Commission President Ursula von der Leyen on Friday.
The package also aims to prevent transactions with entities operating within Russian special economic zones.
“As evasion tactics become more sophisticated, our sanctions will evolve to stay proactive,” von der Leyen stated. “Thus, for the first time, our restrictive measures will target crypto platforms and prohibit transactions in cryptocurrencies.”
She continued, “We are identifying foreign banks linked to Russian alternative payment service systems, and we are imposing restrictions on transactions with entities situated in special economic zones.”
The sanctions are not yet finalized and require the approval of all 27 EU member states.
Related: Privacy is a ‘constant battle’ between blockchain stakeholders and the state
Von der Leyen mentioned that these measures are in response to Russia’s “largest-scale drone and missile attacks against Ukraine,” which have also involved Shahed drones breaching EU airspace in Poland and Romania.
Russian oil companies have reportedly utilized digital assets to bypass sanctions, conducting transactions worth tens of millions of dollars monthly using Bitcoin (BTC) and Tether’s USDt (USDT), as reported by Reuters in March, citing four sources with direct knowledge of the situation.
In July, the US Department of Justice charged Iurii Gugnin, also known as George Goognin and Iurii Mashukov, a Russian man living in New York, with 22 criminal counts, including money laundering over $540 million through his crypto firms, Evita Investments and Evita Pay, while facilitating transactions for sanctioned Russian entities.
Related: Swiss banks finalize first blockchain-based legally binding payment
Ukraine aims to enhance financial resilience with Bitcoin reserve
On the opposing side of the conflict, Ukraine is working to bolster financial resilience through a proposed national Bitcoin reserve.
Ukrainian lawmakers are progressing with a national Bitcoin reserve proposal, with a draft bill nearing completion, according to Yaroslav Zhelezniak, a parliament member who confirmed the initiative to local media outlet Incrypted in May.
The proposal was unveiled during the Crypto 2025 conference in Kyiv on February 6. “We will soon present a draft law from the industry that will allow for the creation of crypto reserves,” Zhelezniak stated.
Bitcoin has been increasingly acknowledged as a national reserve asset since March 7, when US President Donald Trump signed an executive order to establish a national Bitcoin reserve funded with BTC confiscated from criminal cases.
A month later, Swedish MP Rickard Nordin issued an open letter calling on Finance Minister Elisabeth Svantesson to consider embracing Bitcoin as a national reserve asset, emphasizing its growing status as a “hedge against inflation,” Cointelegraph reported on April 11.
Magazine: Bitcoin is ‘funny internet money’ during a crisis: Tezos co-founder
