EU Imposes Sanctions on HTX

The European Union has included cryptocurrency exchange HTX in its latest package of sanctions against Russia. From 23 August, individuals and companies in the EU will be prohibited from conducting transactions with the exchange. However, the decision does not freeze HTX’s assets or place it under a comprehensive sanctions designation.

HTX was included in the 21st sanctions package, adopted on 23 July, under the name of its operator, Huobi Global SA. Brussels concluded that the company was significantly undermining restrictions imposed on Russia. The package covers 218 individuals and entities, making it the EU’s largest sanctions list in four years.

The transaction ban has also been extended to 14 platforms providing cryptocurrency-related services. These platforms operate in countries including Georgia, Panama, the United Arab Emirates, Kyrgyzstan and Belarus. Four entities linked to the A7 cross-border payment network, which is expanding its operations in Africa, have also been sanctioned.

For the first time, the EU has introduced the possibility of completely banning cryptocurrency services originating from a non-EU country. The measure is intended to deter countries from providing infrastructure to platforms that help Moscow circumvent sanctions.

HTX, formerly known as Huobi, was founded in China in 2013. Billionaire Justin Sun, the founder of Tron, is the exchange’s owner and adviser.

The United Kingdom imposed sanctions on HTX in May. The exchange is suspected of transferring more than $1.5 billion to the Kremlin and providing services to the A7 network. A7A5, a rouble-backed stablecoin linked to the network, is believed to be used by Russia to move money.

HTX denies the allegations, arguing that there is insufficient evidence to justify the sanctions. It says recent changes to its wallet addresses on the TRON, Ethereum, BNB Smart Chain and Solana networks were routine security measures. The United States has not sanctioned the exchange to date.