The European Union has expanded its sanctions targeting Russia by imposing a transaction ban on Justin Sun-owned HTX and 13 other crypto platforms across several jurisdictions, including the United Arab Emirates, Panama, Georgia, the Marshall Islands, Kyrgyzstan and Belarus. The named platforms include BitPapa, A7 networks and others.

According to the EU Council, the platforms acted as conduits for blocked Russian entities seeking to move funds and bypass existing sanctions. The transaction ban prohibits EU persons and companies from doing business with the listed crypto platforms. For European counterparties, the immediate compliance issue is therefore specific to dealings with the named services, rather than a blanket restriction on all crypto activity in the jurisdictions where they operate.

HTX’s inclusion on the sanctions list is especially notable because the exchange, owned by Justin Sun, was also banned by the U.K. in May. To counter the potential freezing of funds, HTX moved its reserves to an unknown third party and has been switching hot wallets, making sanctions screening more difficult, according to a prior AMBCrypto report.

The EU’s move to target crypto services operating in third countries marks a broader escalation in sanctions enforcement involving digital assets. By extending restrictions beyond entities inside the bloc, the measure could increase pressure on platforms and jurisdictions accused of enabling sanctions evasion.

What the EU crackdown means for crypto

Russia turned to crypto for oil exports and other international trade after facing sanctions and being removed from SWIFT. During that period, it accelerated its crypto regulatory framework. Crypto’s non-sovereign design made it a widely used alternative for moving funds among sanctioned countries. Venezuela and Iran have also used crypto routes to bypass Western sanctions.

The EU’s new ability to ban offshore platforms, third countries, or potentially cut off an entire regional bloc represents a more forceful regulatory tool. According to Chainalysis, “For the crypto industry, this package signals a shift in how regulators view platforms’ role in sanctions enforcement.”

The firm added, “Platforms that fail to prevent sanctioned entities from using their services are now targets themselves, and the third-country ban mechanism means entire jurisdictions could be cut off from European markets if they host platforms facilitating evasion.”

For the EU, the country-level ban is presented as a major tool for addressing crypto-based sanctions evasion. It also acts as a deterrent to countries hosting platforms that help Russia evade EU sanctions.

The development comes as the U.S. froze more than $1 billion in crypto funds tied to Iran as part of measures linked to the ongoing West Asia crisis. The U.S. also sanctioned several local crypto firms and their leadership, according to another AMBCrypto report.

The latest EU action extends a transaction ban across 14 crypto exchanges and signals that platforms and host countries with weak sanctions screening may face greater regulatory risk. Crypto is increasingly being treated not as a loophole for sanctioned entities and alleged criminal actors, but as a key chokepoint for sanctions enforcement.