EU Proposes Comprehensive Crypto Ban on Russian Transactions

The European Commission has introduced its 20th sanctions package, which proposes a broad prohibition on all cryptocurrency transactions that involve Russia. This shift represents a significant move from merely focusing on individual offenders to a more extensive effort aimed at eliminating the financial infrastructure that supports such activities.

Central to the effectiveness of this measure is the ability of the EU to increase the costs associated with evasion. This hinges on regulating key chokepoints, including licensed exchanges, stablecoin providers, and financial intermediaries operating in other nations. The outcome of this initiative will depend on how well these chokepoints can be monitored and controlled, determining whether the flow of cryptocurrency into Russia will cease or simply shift to jurisdictions beyond EU reach.