European Union considering a ban on crypto transactions with Russia to tighten sanctions evasion: FT

The European Union is contemplating a complete ban on cryptocurrency transactions involving Russia to prevent Moscow from using digital assets to evade existing sanctions. This measure is specifically aimed at blocking "copycat Russian crypto entities spun out of already sanctioned platforms" that facilitate trading supporting Russia's war in Ukraine. The proposed action is intended to prevent the emergence of successors to the sanctioned Russian exchange Garantex, which, along with Iranian exchange Nobitex, accounted for over 85% of inflows to sanctioned entities in 2024, according to TRM Labs. Furthermore, the EU is considering restrictions on exporting certain dual-use goods to Kyrgyzstan, alleging that companies there are selling electronics used in drones and weapons to Russia, evidenced by an 800% surge in EU imports to Kyrgyzstan and a 1,200% rise in exports from Kyrgyzstan to Russia since the war began. These proposals require unanimous approval from the 27 member states, though three countries have reportedly expressed reservations.

(Source：The Block)