DeutschThe EU is planning crypto censorship against Russia, which could come into force as early as the end of February. Russia has been affected by severe financial sanctions since 2022, which are increasingly being circumvented through the use of cryptocurrencies. The European Union now wants to put an end to this.
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EU plans crypto censorship against Russia: This is how it should work
The European Union (EU) is planning crypto censorship against Russia for the first time – this is according to a statement by Ursula von der Leyen, the President of the EU Commission. In a statement, von der Leyen explained the background to the 20th sanctions package, which the EU wants to implement against Russia in the near future.
The EU member states still have to vote on the sanctions package before it can come into force. The EU expects the package to come into force by the end of the month. In the meantime, the European Union is also identifying the crypto ecosystem as a problem. This has been increasingly used by Russia for several months to escape financial sanctions imposed by the EU and the USA.
Russia has been excluded from the SWIFT banking network since 2022. Since then, Russia has tested many alternatives. Blockchains are now proving to be a potent way out. Russian companies are increasingly processing their international trade with cryptocurrencies such as Bitcoin or stablecoins.
“We (…) are taking measures against cryptocurrencies, companies that trade in them and platforms that enable crypto trading in order to close loopholes to circumvent the sanctions,” explained von der Leyen.
According to the Financial Times, EU representatives have revealed that Russia is using the establishment of constantly new companies to circumvent sanctions. If specific companies are sanctioned by the EU, Russia simply sets up new companies.
“Any further listing of individual crypto service providers is therefore likely to lead to the establishment of new companies to circumvent these listings,” the Financial Times quotes an internal EU document.
The EU is therefore planning a comprehensive crypto ban for companies of Russian origin.
“To ensure that the sanctions achieve their intended effect, the EU prohibits cooperation with crypto service providers and the use of platforms that enable the transfer and exchange of cryptocurrencies and are based in Russia,” it continues.
Why cryptocurrencies undermine financial sanctions
Cryptocurrencies are already proving to be a good way of undermining financial sanctions in various countries around the world. In addition to Russia, Iran has also made headlines for its cross-border use of cryptocurrencies.
The decentralized functioning of the blockchain prevents sanctions from being effectively enforced. Any user can send money via independent crypto networks without having to fear outside interference. Russia wants to make greater use of this advantage in the future. At the end of 2025, the Russian central bank and the Ministry of Finance jointly announced that they would be easing regulatory supervision in order to promote use by Russian companies.
The basic functioning of the blockchain also makes sanctions more difficult. Users do not have to identify themselves by name. Identifications are only successful after lengthy monitoring and evaluation. Even sanctionable tokens such as the stablecoin USDT are used by the sanctioned countries, but risk the confiscation of their assets.
It is considered very unlikely that the EU will succeed in disrupting Russia’s trade through the latest sanctions. Even though the authorities are trying to implement their sanctions via centralized companies instead of via decentralized networks.
