EU Introduces New Sanctions Targeting Crypto Exchanges Assisting Russia

The European Union has adopted its 14th package of sanctions against Russia. According to the EU’s official announcement, a separate section of these sanctions focuses on the financial sector.

Measures Against Russia’s Financial Messaging System

First, the EU will take action against the Bank of Russia’s Financial Messaging System (SPFS), which serves as Russia’s alternative to SWIFT. EU operators working outside of Russia will be prohibited from connecting to SPFS or similar specialized financial messaging services. Additionally, EU operators will be banned from conducting transactions with specifically designated entities using SPFS outside of Russia.

Ban on Transactions with Certain Crypto Asset Providers

Second, the EU Council is introducing a ban on transactions with targeted credit and financial institutions, as well as crypto asset service providers established outside the EU, when these entities facilitate transactions that support Russia’s defense industry. This includes the export, supply, sale, transfer, or transportation to Russia of dual-use goods and technologies, sensitive items, military goods, firearms, and ammunition.

Definition of Crypto Asset Service Providers

Under EU legal terminology, “crypto asset service providers” include crypto exchanges and similar platforms, as they offer services such as the custody and administration of crypto assets, exchanging crypto assets for fiat currency, and other related activities.