EU sets up crypto task force to curb Russian sanctions evasion

Key points

• The task force sits within a new EU sanctions office and is expected to run for 12 months.
• It targets networks such as the A7A5 digital ruble stablecoin, which processed over $100bn in transactions before sanctions hit.
• The EU's 21st sanctions package allows bans on entire crypto jurisdictions, while US FinCEN blacklisted MEXC over $16bn in suspicious transactions.

The EU has formed a crypto task force to close loopholes that let Russia evade sanctions using digital assets. The Commission announced the move at its tenth high-level meeting on union restrictive measures, where it set up a dedicated sanctions office to examine how the bloc applies sanctions against Russia and how the country adapts to get around them.

The office will coordinate member states across policy design, implementation, enforcement support and anti-circumvention.

The crypto task force sits inside that office and deals with digital assets used to skirt restrictions. EU spokesperson Siobhan McGarry said crypto is a known tool for circumvention. The A7A5 digital ruble stablecoin recorded transaction volumes of over $100bn before a sanctions action dismantled a dollar-based exchange network and sharply cut its operational volumes.

The EU has been active in this area since July, when its 20th sanctions package targeted the Russian crypto ecosystem.

What to watch: The crypto task force is expected to work for 12 months, with support from countries including Ukraine and the UK.

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