The 20th package of EU sanctions banned all Russian crypto operations. From May 24, 2026, any transactions with Russian-registered crypto providers and exchange platforms will be illegal for market participants under EU jurisdiction.
The new sanction is in line with the plans of the Russian government to stabilize the crypto market in the family: the bill “On Modern Money and Modern Freedom” requires the legal storage of crypto-currencies in depositories and ban private wallets. The combination of these two events creates a huge risk for Russian crypto investors.
BeInCrypto’s editorial team discussed the implications of the new restrictions with experts. This is how our respondents believe that the 20th package of sanctions will affect the Russian crypto industry.
Will all crypto that touches Russian territory now be “dirty”?
Mikhail Uspensky, a member of the State Duma’s expert council on legal regulations for cryptocurrenciesHe believes that he was previously considered de facto as: a major platform, especially European, refusing to accept cryptocurrency and the Russian connection.
However, not all experts share this assessment.Daria Mitrokhina, senior lawyer of international projects at Right Sideexplains that cryptocurrency used only by Russian citizens or unofficial platforms may not have the same risk of blocking as assets used through official platforms. According to him, such cryptocurrency is not considered “dirty,” as it is defined as a crime-related asset. However, it carries more risks and carries sanctions, which, in his opinion, will make foreign platforms and countries more cautious in dealing with the Russian people.
As a reminder, the 20th package also imposes penalties on those who support and facilitate the spread of Russian cryptocurrency around the world.
Olga Ocheretyanaya, senior partner in cryptocurrency management and mining systems at Right Sidethey take the same place. He believes that the EU sanctions focus on Russian platforms and exchanges, real signals connected to the Russian financial system, and the infrastructure of evading sanctions does not only provide for everything that happened with a Russian citizen or passed through the Russian wallet “dirty.” However, he warns that if the new laws in Russia are implemented as they are now, then the consequences will be.All crypto platforms registered in Russia are accepted, and wallets and cryptocurrencies passing through them will be registered.
Is it possible to follow Russian law and avoid labeling?
Working with official Russian platforms with the aim of bringing cryptocurrencies to international markets is not practical – it can hinderwarns Daria Mitrokhina. However, people still have the opportunity to choose other platforms within the legal framework, including legal services.
Will regulators abandon plans to centralize the crypto market?
The idea of introducing digital depositories is causing confusion and confusion among many market participants.said Mikhail Uspensky. According to him, closing the loop inside and validating authentication is a Russian skill, born from the practice of implementing security rules on a distributed ledger. The role of the EU should scare the authors of the bill:
“Dealing with middle managers will undoubtedly soon create groups/circles in the blockchain that are easily tracked and identified by the ‘Russian red line.’ Hacking, leaking, simple monitoring, or other leakage of data linking address identifiers to Russian digital storage can cause problems for many, if not hundreds, of legitimate citizens of Russia who want to buy crypto on legitimate exchanges,” warns Mikhail Uspensky.
However, lawyers believe that the sanctions will have the opposite effect. The main goals of the Russian Federation are to prevent the market from foreign influence, to strengthen the ruble, to establish its own payment system, and to increase its independence in the international market, says Daria Mitrokhina:
“Strengthening the punishments is better to speed it up than to reduce it, taking the approach of ‘they toughen them, we leave.’
Olga Ocheretyanaya agrees with this assessment: the sanctions, on the contrary, are pushing the Russian authorities to create their own closed environment, leaving the opportunity to exclude foreign services. At the moment, the question of how cryptocurrency within the region will be “cleaned” and how money will be achieved remains open.
He also emphasizes that EU sanctions only affect those inside them: European service providers and users. In fact, Russia has already established a route through Asia, the Middle East, and other friendly regions, and the necessary routes only continue to areas where EU rules do not apply.
Cross-border rural planning using the digital ruble
The creation of the digital ruble was initially not intended to prevent sanctions, but to create its own payment system, recalls Daria Mitrokhina. The aim was to work with neutral and friendly countries, because the EU sanctions have shown that Russia is an undesirable part of their market. The new package of sanctions will not affect the plans for the release of the digital ruble, but it will affect its location and the way it works. Goals should be changed and not eliminated.
According to Olga Ocheretyanaya, the issue is not related to EU sanctions that prevent participation in the development of the necessary digital ruble, but rather to reach the necessary agreement between the members of BRICS to use this tool for building between them.
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A note The Cryptocurrency Trap: How Russia’s New Laws Will Support EU Sanctions appeared for the first time BeInCrypto.
