EU Sanctions Package Targets Cryptocurrency Infrastructure

The European Union has taken a significant step in its efforts to restrict Russia's access to cryptocurrency markets with the introduction of its 20th package of sanctions.

Compared to previous measures, which primarily targeted specific exchanges or wallets, this new package takes a more comprehensive approach by targeting service providers and decentralized trading platforms that enable Russia-linked crypto settlement.

The new rules require crypto firms to screen not only named entities but also the infrastructure behind them, including the country where an intermediary is based, the token used to settle, and the payment agent moving the money.

This shift in focus from names to routes is expected to create more friction for Russia-linked transactions and may lead to increased costs and reduced liquidity for those involved.