A Cryptocurrency Trap: How New Russian Laws Will Support EU Sanctions

A Cryptocurrency Trap: How New Russian Laws Will Support EU Sanctions

The 20th EU sanctions package imposed a sectoral ban on all Russian crypto services. From May 24, 2026, any transactions with Russian-registered crypto providers and exchange platforms will become illegal for market participants under EU jurisdiction.

The new sanctions coincide with Russian authorities' plans to centralize the domestic crypto market: the bill " On Digital Currency and Digital Rights " proposes mandatory storage of cryptocurrencies in depositories and a ban on personal wallets. The combination of these two developments creates serious risks for Russian crypto investors.

BeInCrypto's editorial team discussed the implications of the new restrictions with experts. Here's how our interviewees believe the 20th sanctions package will impact Russia's crypto industry.

Will all crypto that touches the Russian circuit now become "dirty"?

Mikhail Uspensky, a member of the State Duma's expert council on legislative regulation of cryptocurrencies , believes that it is already considered de facto as such: large platforms, primarily European ones, refuse to accept cryptocurrency with a Russian connection.

However, not all experts share such a categorical assessment. Daria Mitrokhina, a leading lawyer for international projects at Right Side , clarifies that cryptocurrency used solely by Russian citizens or unsanctioned platforms will not carry the same risk of blocking as assets used through sanctioned platforms.

According to her, such cryptocurrency is not considered "dirty," as it is defined as assets linked to criminal activity. However, it carries increased risk and is subject to sanctions, which, in her opinion, will make foreign platforms and countries even more cautious when dealing with Russians.

As a reminder, the 20th package also imposes sanctions on those who support and facilitate the circulation of Russian cryptocurrency on the international stage.

Olga Ocheretyanaya, a senior associate in the cryptocurrency regulation and mining practice at Right Side , takes a similar position . She believes that the EU sanctions' focus on Russian platforms and exchanges, specific tokens linked to the Russian financial system, and sanctions-evasion infrastructure does not automatically render any asset that was once held by a Russian resident or passed through a Russian wallet "dirty."

However, she warns that if the new regulations in Russia are implemented as currently formulated, it will inevitably result in all officially registered crypto platforms in Russia being sanctioned, and the wallets and cryptocurrency passing through them will be labeled .

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