Ukrainian regulator imposes sanctions against 60 Russian cryptocurrency firms

Ukraine has stepped up its efforts to block the use of cryptocurrency to circumvent sanctions imposed by Russia by introducing a new set of restrictions on individuals and companies that help Moscow transfer funds through digital assets. The decree was signed by President Volodymyr Zelenskyy and blacklisted more than 70 people and 60 organizations suspected of helping to avoid sanctions, Ukrayinska Pravda reports.

Among those sanctioned are large Russian mining companies, issuers of digital assets, and payment intermediaries, which, according to the Ukrainian authorities, move significant amounts of capital to support the Russian military-industrial complex. Investigators believe that some of the transactions are being conducted through decentralized platforms amid tight international financial restrictions.

The new restrictions have also affected foreign companies, including Cyprus-based TokenTrust Holdings, Kazakhstan-based EXMO RBC, and UAE-based exchanges such as AWX and Bitpapa, which have previously been under US sanctions. They are accused of helping Russia convert cryptocurrencies into fiat money bypassing the traditional banking system.

According to the President’s Office, only one of the firms has transferred billions of dollars to Russia’s defense sector this year. Officials note that the role of cryptocurrencies in Russian financial transactions has increased as access to classic banking channels becomes more difficult.

The new sanctions include the freezing of assets and a ban on any commercial transactions on the territory of Ukraine. Zelenskyy emphasized that these actions are both part of the national strategy and the result of coordination with international allies to finally close all loopholes for circumventing sanctions.