UK and EU Expand Russia Sanctions to Include Crypto-Related Entities

The UK and EU are expanding their Russia sanctions to include crypto-related entities, signaling stricter scrutiny of payment flows and third-country exposure. The UK has already added multiple crypto-related entities to its Russia sanctions list, and the EU is expected to follow with similar measures in mid-July.

Regulation 17A, which prohibits processing payments to or from designated persons, now applies to crypto-asset exchanges in the UK. This marks a shift towards dynamic control of financial flows, with crypto firmly in scope.

The EU's proposed 21st package of sanctions against Russia includes transaction bans on banks and crypto firms/platforms that service sanctioned Russian entities or individuals. The possibility of a full ban on third-country crypto-asset services providers is also being considered.