EU Imposes Broad Ban on Russian and Belarusian Cryptocurrency Providers

The European Union has taken a significant step in its ongoing efforts to combat Russia's use of cryptocurrencies by introducing a blanket ban on all Russian and Belarusian cryptocurrency providers. This move is part of the EU's 20th sanctions package against Russia and aims to prevent the 'Russian rebrand' phenomenon, where banned platforms are replaced with new ones.

The previous approach of targeting individual platforms has been deemed ineffective, as seen in the case of Garantex, which was seized by law enforcement in March 2025. Former operators launched Grinex, a near-identical platform registered just months earlier in December 2024, allowing users to move balances seamlessly.

The EU's blanket prohibition on Russian and Belarusian cryptocurrency providers is a significant shift from the previous entity-based screening approach. Compliance teams will now need to use tools that identify the domicile and operational base of any crypto service provider they interact with. The measures also build on the EU's Markets in Crypto-Assets Regulation, which has been fully applicable since December 2024.