EU Proposes Blanket Crypto Ban Targeting Russia Amid Sanctions Escalation
EU Proposes Blanket Crypto Ban Targeting Russia Amid Sanctions Escalation
The European Commission's latest sanctions package includes a comprehensive ban on all cryptocurrency transactions involving Russia. This move represents an escalation from targeting specific entities to attempting to control the fundamental rails of crypto flows, aiming to raise the cost of evasion by focusing on regulated exchanges and stablecoin issuers. The effectiveness of this ban hinges on the EU's ability to control these chokepoints, determining if flows will cease or simply relocate offshore.
The European Commission's 20th sanctions package proposes a comprehensive ban on all cryptocurrency transactions involving Russia, an escalation from targeting specific bad actors to attempting to sanitize the rails themselves. The question is whether the EU can raise the cost of evasion sufficiently by controlling chokepoints: regulated exchanges, stablecoin issuers, and third-country financial intermediaries.