China Retaliates Against EU Sanctions Involving Cryptocurrency Transactions

China has swiftly countered the European Union's sanctions targeting Chinese entities accused of facilitating cryptocurrency transactions with Russia. Beijing's Ministry of Commerce dismissed the EU's measures as "politically motivated" and lacking factual foundation.

On August 13, 2025, China imposed retaliatory restrictions on two Lithuanian financial institutions—UAB Urbo Bankas and AB Mano Bankas—barring Chinese organizations and individuals from engaging in transactions or cooperation with them. The MOVE cites China's Anti-Foreign Sanctions Law, signaling a hardened stance against perceived economic coercion.

The escalation opens a new front in EU-China tensions, compounding existing friction over trade and geopolitical alignments. The EU's latest sanctions package, aimed at curtailing Russia's war efforts in Ukraine, inadvertently entangled cryptocurrency networks in the broader geopolitical struggle.