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At the end of July 2026, the European Union adopted the twenty-first package of sanctions against the Russian Federation. This new set of measures includes a number of changes to cryptocurrency market regulation, significantly expanding the powers of EU supervisory authorities. The main change is that the EU Council now has the authority to impose pan-European bans on cryptocurrency platforms registered in non-EU countries. This means that entire jurisdictions could be targeted if, in Brussels' view, they systematically allow the use of crypto assets to circumvent sanctions.

As part of this package, four organizations associated with the A7 Ruble network, which had previously been sanctioned by the UK, were added to the sanctions list. Furthermore, the new rules aim to sever financial ties with a number of African companies and impose an outright ban on transactions with fourteen cryptocurrency services from Georgia, Panama, the UAE, the Marshall Islands, Kyrgyzstan, and Belarus. These measures continue the EU's previous policy of restricting Russian crypto infrastructure.

The most significant changes concern two additional provisions that go beyond the standard sanctions. The first, which comes into force on August 25, 2026, expands the ban on Russian and Belarusian citizens owning, controlling, or holding senior positions in cryptocurrency services within the EU. The ban now applies to all types of crypto services listed in the MiCA regulation, including advisory services, portfolio management, and funds transfers. These changes are incorporated into Article 5b of Council Regulation (EU) 2026/1848, amending Regulation (EU) No 833/2014.

The second provision has extraterritorial effect and prohibits cryptocurrency transactions with entire countries if local service providers fail to comply with EU sanctions requirements. According to the new Article 5bc, it is prohibited to directly or indirectly conduct transactions with any legal entities, organizations, or bodies that are crypto service providers or platform operators in third countries. The EU Council will compile a list of such countries that systematically fail to prevent sanctioned activities. Currently, this list is empty, so the provision is of a preventive nature.

Sanctions expert Nick Turner noted that the EU, which previously avoided secondary sanctions, is now actually leaning toward their use. He warned of potential legal conflicts, as third-country regulators are held accountable for failing to prevent activities subject to EU sanctions, regardless of their domestic legislation. According to Turner, this measure will be used more as a diplomatic tool than as a mechanism for immediate repression.