EU bans crypto providers supporting Russia’s defence-industrial base

The European Council announced its 14th sanctions package targeting crypto providers established outside Europe that support Russia’s defense industrial base.

European leaders agreed to another package of sanctions targeting “high-value sectors of the Russian economy such as energy, finance and trade”, making it even harder to circumvent EU sanctions.

The latest package includes restrictive measures against “an additional 116 individuals” as well as entities “responsible for actions that undermine or threaten the territorial integrity, sovereignty and independence of Ukraine”, the European Council said in a June 24 press release. Following the latest action, the sanctions list now includes more than 2,200 organizations, Reuters notes in a report.

“The 14th sanctions package demonstrates our unity in the effort to support Ukraine and limit Russia’s criminal activities against Ukrainians, including efforts to circumvent EU measures.”

Josep Borrell, EU high representative for foreign affairs and security policy

Among the many restrictive measures developed “to prevent” [sanctions] The European Council also banned transactions targeting crypto providers established outside the EU; these organizations facilitate transactions that support Russia’s defense industrial base through the bilateral export, supply, sale, transfer or transportation of cryptocurrencies to Russia. use goods and technology, sensitive items, battlefield goods, firearms and ammunition.”

While details of how European countries plan to monitor the industry for possible sanctions violations remain unclear, some industry experts suggest this will require extensive due diligence.

This development comes just months after the European Council and Parliament agreed on tighter regulations for crypto companies in a bid to improve anti-money laundering (AML) measures in the sector. Starting in January, crypto firms must take a closer look at their customers, especially for transactions of €1,000 or more. The aim is to ensure that cryptocurrencies are not used for illegal activities or to evade sanctions.