Whalesbook
EU Bans Russian Crypto Services in Latest Sanctions
The European Union has stepped up financial pressure on Russia with its biggest sanctions package in two years, implementing a total ban on crypto asset service providers and platforms operating in Russia. This firm stance directly confronts Russia's increasing use of digital assets to skirt sanctions and conduct trade. The EU stated Russia's growing reliance on cryptocurrencies for international transactions as the main reason for these measures. This marks a major policy shift, making crypto assets a key target in EU enforcement.
Targeting Evasion Networks
The new sanctions aim to break down complex crypto-based evasion tactics developed over years of sanctions enforcement. Notably, the EU has targeted the Garantex–Grinex–A7A5 stablecoin ecosystem, with the A7A5 stablecoin being a key focus. This ruble-backed stablecoin, issued by Kyrgyz company Old Vector and backed by deposits from Russia's Promsvyazbank (PSB), has processed billions, serving as a crucial link for sanctioned Russian businesses to the global financial system. Chainalysis reports indicate A7A5 processed over $51.17 billion in volume by the end of July 2025, and in less than a year, facilitated over $93.3 billion in transactions, highlighting its role in Russia's shadow economy. The sanctions also target TengriCoin (Meer.kg), a Kyrgyz crypto exchange where A7A5 is traded, further tightening the crypto restrictions for Russia and Belarus.
Expanded Financial Restrictions
Beyond the direct crypto ban, the EU's sanctions package includes measures against 20 Russian banks and four third-country financial institutions. These entities are targeted for their links to Russia's System for Transfer of Financial Messages (SPFS), Moscow's domestic alternative to SWIFT. The SPFS allows Russia to exchange payment orders and transaction data, maintaining financial links outside international networks while facing scrutiny for potential sanctions evasion. The sanctions also explicitly prohibit Russia's central bank digital currency, RUBx stablecoin, and any EU support for the digital ruble's development, aiming to block future evasion routes.
Impact on EU Citizens and Global Markets
EU citizens can no longer transact with crypto service providers (CASPs) or DeFi platforms based in Russia and Belarus. EU entities are also barred from offering Markets in Crypto-Assets Regulation (MiCA) crypto services to Belarusian individuals and entities. The prohibition on "netting transactions with Russian agents" aims to close another key channel for sanctions evasion.
Chainalysis calls this "a new era" of crypto enforcement, where the EU targets entire categories of evasion infrastructure instead of just individual actors. This ecosystem-wide approach signals a strategic shift, addressing concerns that targeting individual actors only leads to new platforms emerging. The United States and the United Kingdom have also been actively targeting crypto-related sanctions evasion. The US Treasury has warned foreign banks about the risks of secondary sanctions for joining Russia's SPFS system, while the UK has sanctioned entities and individuals in Kyrgyzstan for facilitating Russian sanctions evasion via crypto networks like A7A5. The global crypto compliance environment is tightening, with strong enforcement measures now in place to counter evasion tactics.
Market Context: Bullish Inc.
While the EU's sanctions focus on Russia's financial channels, the broader global regulatory environment for digital assets continues to evolve, impacting crypto companies worldwide. In Q4 2025, Bullish reported an EPS of $0.19, exceeding analyst expectations. However, the stock has faced headwinds, with some analysts issuing "Hold" ratings amid macroeconomic conditions and concerns about crypto market structure legislation. Trading volumes declined in March 2026, and the company revised earnings estimates downward due to market stresses. Analysts maintain a consensus "Buy" rating with a median price target of $50.50, despite mixed recent performance and a Q4 2025 net loss of $(563.6) million. For Q4 2025, the company reported adjusted revenue of $92.5 million and adjusted EBITDA of $44.5 million. Bullish's institutional-only business model and US market expansion are viewed as potential strengths.