EU Targets Russia’s A7 Cryptocurrency Network

The European Union is turning its attention to Russian cryptocurrencies. Its latest sanctions target the A7 network, which, according to Chainalysis, has already processed nearly $120 billion. The network uses the A7A5 stablecoin, which Russia relies on to circumvent international restrictions.

Four entities linked to the cross-border A7 network have been added to the sanctions list, including its new connections in Africa. The transaction ban will also cover 14 unnamed cryptocurrency service platforms operating in Georgia, Panama, the United Arab Emirates, the Marshall Islands, Kyrgyzstan and Belarus.

For the first time, the EU is also introducing the option to completely cut off cryptoasset-related services in third countries. This new measure will make it possible to prohibit transactions between EU companies and any cryptocurrency service provider used by Russia.

The sanctions also include freezing the assets of 94 banks and major financial institutions, as well as a ban on making funds available to them. A further 33 Russian credit and financial institutions will be subject to a transaction ban.

Kaja Kallas, the EU’s High Representative for Foreign Affairs and Security Policy, said the measures cover more than 100 banks and cryptocurrency operators, over 40 vessels belonging to Russia’s shadow fleet, and several refineries in Russia and Belarus.

The new sanctions package was announced three days after Russia’s State Duma adopted the country’s first comprehensive regulations for the cryptocurrency market. Most of the rules will take effect on 1 September. The legislation establishes a legal framework for exchanges, custodians, digital asset providers, investors and traders.