The EU Council has approved the 20th package of sanctions against Russia. It includes strict restrictions for the cryptocurrency sector.
For the first time, the European Union did not limit itself to individual platforms and introduced a sector-wide ban. All crypto services registered in Russia are subject to the restrictions.
The Garantex Lesson: Why Targeted Sanctions Do Not Work
The EU regulation explains why the decision was made to move to sector-wide restrictions. In February 2025, the crypto exchange Garantex was sanctioned for helping sanctioned individuals gain access to the global financial system.
However, the measure proved ineffective. Investigations showed that Garantex’s operations simply shifted to other legal entities in Russia.
The document explicitly states that targeted sanctions against individual exchanges and platforms do not yield results. Instead, new structures emerge to circumvent the restrictions.
That is why the decision was made to ban the entire sector at once.
What Exactly Is Banned
Our editorial team reviewed the documents and compiled all the restrictions from the new package into one list.
Sector-Wide Ban on Russian Crypto Platforms
The key measure is a ban on any direct or indirect transactions with crypto providers and crypto exchanges from Russia. This rule is enshrined in Article 5bb of EU Regulation No. 833/2014 and Article 1bb of Decision (CFSP) 2026/508.
The ban will take effect on May 24, 2026. Until then, market participants can complete existing contracts.
Exceptions are provided. They apply to EU and partner country diplomatic missions in Russia, EU citizens who resided in Russia before February 24, 2022, and companies winding down business in the country. In the latter case, permission from the competent authorities of the EU country will be required.
Ban on Certain Crypto Assets and the Digital Ruble
The list of crypto assets with prohibited transactions has been expanded. The cryptocurrency RUBx was added. Operations with central bank digital currencies from the sanctions list and any support for their development from the EU are also banned. This primarily concerns the digital ruble.
An organization from Kyrgyzstan that manages a crypto exchange with significant trading volumes of the ruble stablecoin A7A5 has been subjected to personal sanctions. The company’s name is not disclosed in the press release.
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It will be revealed after the annexes to the regulation are published in the official EU journal. Previously, as part of the 19th sanctions package, the EU had already imposed restrictions against A7A5 and related Kyrgyz companies Old Vector and Grinex.
The EU Council notes that against the backdrop of large-scale financial restrictions, Russia is increasingly using cryptocurrencies for international settlements. At the beginning of 2026, the volume of transfers via the ruble stablecoin A7A5 exceeded $100 billion.
Crackdown on Sanctions Evasion Schemes
Another measure targets services that are not banks or crypto providers but in fact help conduct international settlements.
This refers to netting schemes, clearing, and other methods commonly used to circumvent restrictions.
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The ban also applies to “mirror” and “subsidiary” structures of blocked crypto providers and payment services.
Ban on Transactions for Banks
Restrictions have been imposed against 20 Russian banks. Four more financial institutions from third countries have been sanctioned for helping to circumvent restrictions or for links to the SPFS system, Russia’s equivalent of SWIFT.
Mirror Measures Against Belarus
Similar restrictions in the cryptocurrency sphere have also been extended to Belarus. The sanctions regime against the country has been extended until February 28, 2027.
Not the Best Time for Sanctions
The new EU sanctions coincided with attempts by Russian authorities to force the crypto market into local platforms. Under the draft law “On Digital Currency and Digital Rights,” crypto is to be required to be stored in depositories under the control of the Central Bank. Personal wallets are planned to be banned, and a limit of 300,000 rubles per year is to be introduced for unqualified investors. The law could take effect as early as July 1, 2026.
As a result, a strange situation arises. Russia is pulling the market under its control, while the EU is simultaneously cutting off Russian crypto services entirely. Those forced to switch to domestic platforms automatically lose access to European counterparties.
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There is another risk. Crypto passing through the Russian circuit may start to be considered “dirty.” This is roughly how assets linked to Iran and North Korea are treated now. If this happens, withdrawing funds outside Russia will become much more difficult. Any transaction may run into blocks.
