The European Commission has drafted a measure to prohibit transactions with exchanges and crypto asset service providers registered in Russia. The draft shifts from targeted listings to an activity-based approach that bars dealing with Russian-registered crypto venues and service providers. Named targets include Garantex, the A7 payment platform and its A7A5 ruble stablecoin. The package also includes expanded banking blacklists, restrictions on shadow-fleet tankers used for oil and LNG shipments, and limits on exports of metals and chemicals, coordinated with G7 partners. Enforcement would rely on leverage over EU-licensed exchanges, licensed crypto asset service providers, payment processors and banks to implement and monitor the ban. Stablecoin issuers that seek access to EU markets could be required to add blacklists, tighten redemption controls, and implement enhanced screening. The draft contemplates selective secondary measures to restrict non-EU platforms' access to EU markets and banking services if they do not align with the prohibition. Officials and analysts report earlier actions reduced flows into sanctioned entities via centralized exchanges by roughly 30 percent. The proposal calls for firms to map exposure to Russian-registered services, update counterparty due diligence and sanctions clauses, harden wallet screening and geofencing, enhance OTC and P2P monitoring, and reassess stablecoin redemption mechanics and counterparty onboarding. The draft calls for firms to establish internal ownership for enforcement tasks, test kill switches for counterparties and liquidity bridges, prepare customer communications for rapid offboarding, and integrate monitoring tools for tokenized ruble exposure and high-risk liquidity bridges. Next steps include publication of final legal text, national implementation schedules, and any secondary measures to compel compliance by non-EU actors.
Source: https://web3businessnews.com/crypto/eu-ban-russia-linked-crypto/