Brussels is preparing one of its most aggressive crypto-related sanctions measures to date, seeking to block all cryptocurrency transactions tied to Russia as part of its upcoming 20th sanctions package.
According to a Financial Times report, European officials are drafting rules that would effectively prohibit EU individuals and companies from engaging with any crypto asset service provider established in Russia or using platforms that facilitate crypto transfers connected to the country. The package is expected to be adopted around Feb. 24.
The proposed framework goes beyond earlier sanctions that focused on listing specific entities. Instead, it aims to close structural loopholes that EU officials say have allowed new crypto intermediaries to emerge each time a sanctioned provider is blacklisted.
Closing perceived crypto loopholes
An internal European Commission document cited in the report argues that targeting individual service providers has proven insufficient, as new platforms can quickly be created to bypass restrictions. A broader ban, officials believe, would reduce the scope for such circumvention.
The wider sanctions package is also set to target 20 additional Russian regional banks, alongside several financial institutions in third countries. Reuters reported that two Kyrgyz banks — Keremet and OJSC Capital Bank of Central Asia — as well as lenders in Laos and Tajikistan, are among those proposed for listing. If approved, they would be cut off from transactions with EU individuals and companies.
European Commission President Ursula von der Leyen has framed the measures as part of a continued effort to tighten financial pressure on Moscow, including in areas where digital assets may be used to facilitate cross-
border payments outside the traditional banking system.
A7A5 stablecoin under scrutiny
The sanctions discussion has drawn attention to A7 and its ruble-pegged stablecoin A7A5, which has grown rapidly in 2025 to become one of the largest non-dollar stablecoins by market value, according to data from CoinMarketCap and DefiLlama.
The platform has denied allegations that it is facilitating sanctions evasion, describing such claims as politicized and unsupported by evidence.
Still, some analysts have questioned the reliability of A7A5’s reported activity. Blockchain analytics firm Global Ledger said it observed patterns consistent with wash trading that may have inflated trading volumes and simulated demand.
Whether the EU can technically enforce a blanket ban on Russia-linked crypto activity remains an open question. Global Ledger co-founder and CEO Lex Fisun argued that decentralized liquidity makes a complete shutdown difficult in practice.
Tokens such as A7A5, he noted, can be swapped into globally traded stablecoins through onchain liquidity pools without relying on centralized intermediaries that conduct compliance checks. Once assets move through large exchanges and liquidity hubs, tracing and isolating specific flows can become increasingly complex.
According to Fisun, enforcing a comprehensive ban could require European platforms to block broad categories of global liquidity — a step that could disrupt legitimate market activity alongside targeted flows.
Top five largest non-USD stablecoins by market capitalization. Source: DefiLlama
Russia advances domestic crypto rules
The EU’s latest move comes as Russia continues to formalize its domestic digital asset framework. On Tuesday, Russian lawmakers passed legislation in its third reading establishing procedures for freezing and confiscating digital currency.
Taken together, the developments reflect a growing intersection between geopolitics and crypto infrastructure. While regulators aim to extend sanctions regimes into digital markets, the technical architecture of decentralized networks poses new enforcement challenges.