Ukraine Tightens Crypto Sanctions on Russia in Line With EU

Ukrainian authorities have expanded sanctions on Russia’s financial sector to target cryptocurrency flows, aligning with the European Union’s latest packages and going further in certain areas. President Volodymyr Zelenskyy enacted the updated measures via decree after approval by the National Security and Defense Council.

The original sanctions, imposed in February 2023 and upheld by parliament, covered all Russian banks, non-bank credit institutions, payment systems, securities market participants, insurance firms, and investment funds. The new amendments, proposed by the National Bank of Ukraine, specifically target digital financial assets, crypto service providers, and clearing organizations to prevent Moscow from using modern financial tools to bypass restrictions that remain in place for 50 years.

Transactions linked to Russia involving virtual assets, along with platforms and services facilitating such flows, are now prohibited. The move is designed to starve Russia of funds for its war effort.