The European Union has unveiled its 20th sanctions package against Russia, extending restrictions deep into the crypto sector. Under the new measures, EU residents will be fully barred from transacting with crypto-asset service providers (CASPs) and DeFi platforms based in Russia and Belarus. The rules are set to take effect on May 24, 2026. It is the first time Brussels has prohibited contact at the CASP level rather than targeting only specific entities.
Digital ruble, RUBx, and SPFS links added to the sanctions scope
The package places the digital ruble, Russia’s central bank digital currency, and the RUBx stablecoin under Annex LIII, banning any EU person or entity from providing support to them. The EU also added 20 Russian banks and 4 third-country financial institutions connected to Russia’s SPFS financial messaging network. SPFS was created by Russia as an alternative to SWIFT, with links reaching Kyrgyzstan, China, the UAE, Uzbekistan, and Kazakhstan.
The ban also covers netting transactions. EU actors will no longer be allowed to conduct such offset arrangements with Russian agents, closing a channel that had been used to obscure the direction of fund flows.
TengriCoin case sends a warning to third-country VASPs
Kyrgyz exchange TengriCoin, which operates the platform Meer.kg, was specifically named in the new round. According to the EU Council, the exchange was listed because of large-scale trading in the A7A5 stablecoin. A7A5 is issued by Kyrgyz-registered Old Vector LLC, and blockchain intelligence firm Chainalysis has described it as a ���purpose-built settlement rail” used to reconnect sanctioned Russian businesses to the global financial system.
Chainalysis said A7A5 has processed a cumulative $119.7 billion in volume. Its 2026 Crypto Crime Report recorded more than $93.3 billion in flow over a single year. The report also noted that after Garantex was sanctioned by OFAC, some funds shifted to Grinex. Grinex later said on April 16, 2026 that it had been hit by a hack attributed to “Western intelligence units,” losing $13.74 million before ceasing operations.
Compliance pressure builds for licensed firms in Europe
The EU also moved to ban any MiCA-regulated crypto services for Belarusian individuals and entities, covering both trading and custody. That raises the compliance burden for exchanges already licensed in Europe or still seeking approval. The message from the latest package is direct: helping Russian state-linked crypto tools circulate can trigger EU sanctions even for platforms registered outside Russia.
This round goes beyond wallet addresses or one stablecoin. It targets service providers, payment rails, and parallel financial infrastructure at the same time. How A7A5’s on-chain activity evolves after the rules take effect will be closely watched.