Crypto: Eu Seeks To Close Russia Crypto Loopholes In New Sanctions 2026

The EU plans to ban crypto transactions with Russia by shutting down all related channels, but analysts question whether the measure is fully enforceable.

The European Union is finalizing a new package of sanctions aimed at closing loopholes that officials say have allowed Russia to use cryptocurrency to circumvent existing restrictions.

The EU is seeking to “ban all cryptocurrency transactions with Russia” as part of the upcoming 20th sanctions package, the Financial Times reported on Tuesday.

Unlike previous efforts targeting Russia-linked entities spun out of already sanctioned platforms, the newly proposed measures are broader and are designed to close Russia’s crypto loophole entirely.

“Any further listing of individual crypto asset service providers […] is therefore likely to result in the set-up of new ones to circumvent those listings,” according to an internal European Commission document on the proposed sanctions, cited by the FT.

While the new sanctions package is still being finalized and is expected to be adopted on Feb. 24, European Commission President Ursula von der Leyen said last week that the measures would target 20 additional Russian regional banks, as well as several banks in third countries.

Among the foreign lenders, the EU has proposed sanctioning two Kyrgyz banks, Keremet and OJSC Capital Bank of Central Asia, along with banks in Laos and Tajikistan, Reuters reported on Monday. If approved, the listed institutions would be barred from transactions with EU individuals and companies.

“In order to ensure that sanctions achieve their intended effect [the EU] prohibits to engage with any crypto asset service provider, or to make use of any platform allowing the transfer and exchange of crypto assets that is established in Russia,” the Commission’s document reportedly states.

The report suggests that the measures may target Russia-linked payments platform A7 and its ruble-pegged stablecoin, A7A5. The operator has denied facilitating sanctions evasion, calling such claims politicized and unsupported by evidence.

Despite facing multiple rounds of sanctions, A7A5 emerged as one of the fastest-growing non-dollar stablecoins by market value in 2025, according to data from CoinMarketCap and DefiLlama.

Source: CoinTelegraph