The European Union (EU) is considering banning all crypto transactions with Russia to prevent Moscow from using digital assets to evade sanctions related to the Ukraine conflict, according to documents obtained by the Financial Times.
The EU aims to block “Russian crypto entities copying” that are separated from platforms previously sanctioned. These entities are believed to be supporting trading activities for Russia’s military operations. The new measure also seeks to prevent the emergence of “descendants” of the Garantex crypto exchange — a platform that has been on the EU sanctions list since last year.
Beyond Russia, Kyrgyzstan could also be affected. The EU proposes to ban the export of certain dual-use goods and accuses Kyrgyz companies of selling items such as electronic equipment used in drones and weapons to Russia. The documents indicate that high-priority imports from the EU to Kyrgyzstan have increased by nearly 800% since the outbreak of conflict, while exports from Kyrgyzstan to Russia have risen by 1,200%, highlighting a high risk of sanctions evasion.
Blockchain analysis firm TRM Labs states that Garantex — along with Iran’s Nobitex exchange — accounts for over 85% of the total flow of funds into sanctioned entities and regions in 2024. The U.S. has also imposed sanctions on Garantex and re-designated the platform last year. The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) reports that most of the funds sent to Garantex originate from crypto exchanges involved in criminal activities.
The EU’s proposal requires unanimous approval from all 27 member countries to pass. However, according to the Financial Times, three countries are currently hesitant about this ban.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Cardano founder questions the U.S. CLARITY Act: may take 15 years to implement and could be politicized to curb innovation
Cardano founder Charles Hoskinson expressed strong doubts about the “Digital Asset Market CLARITY Act,” saying the bill could have long-term negative effects, stifle innovation in the industry, and warning that its complex structure may further drive industry consolidation, favoring established projects.
GateNews13m ago
Bitcoin, stocks rise, oil slides, after report of Iran's willingness to end conflict
Bitcoin rose to $68,169.65, gaining nearly 2%, alongside U.S. stocks as Iran’s President hinted at potential conflict resolution. This sparked optimism, easing fears of disruptions in oil supply and negative impacts on global markets.
CoinDesk4h ago
During the Iranian blockade, traffic through the Strait of Hormuz increased; the number of weekly two-way transits rose from 5 ships to 7 ships.
The number of ships transiting the Strait of Hormuz has been increasing slowly, reaching 7 vessels per week, even as Iran continues to blockade most commercially operated ships that have not received permission. This shift suggests that non-hostile Asian country fleets are still passing through the strait, and that Iran’s blockade strategy is gradually evolving into an economic warfare tool.
GateNews5h ago
Iran’s Islamic Revolutionary Guard Corps: As of April 1, it will designate U.S. companies in the region as targets for attack
Gate News update: On March 31, according to Iranian state media, the Islamic Revolutionary Guard Corps said in a statement that, in retaliation for attacks against Iran, it will designate U.S. companies in the region as targets for strikes starting April 1.
GateNews7h ago
Bitcoin Tops $68K Briefly as Risk Sentiment Improves on Iran War Report
Bitcoin's price surged to $68,000 amid easing geopolitical tensions and improved investor sentiment. However, weak ETF inflows and extreme market fear signal a cautious outlook, indicating potential challenges to a sustained recovery.
LiveBTCNews7h ago
U.S. Defense Secretary Hegseth: The world should be prepared for an escalation of the situation in the Strait of Hormuz
Gate News reports that on March 31, the U.S. Secretary of Defense, Lloyd J. Austin, recently issued a statement regarding the situation in the Strait of Hormuz, warning the world to be prepared for potential escalation. The Strait of Hormuz is a narrow waterway connecting the Persian Gulf and the Gulf of Oman. Approximately one-third of the world's seaborne oil shipments pass through this channel. The geopolitical tensions in this region have long had a significant impact on global energy markets and financial markets.
GateNews9h ago
