The European Union has taken action against Garrantex, a crypto exchange established in Russia, as part of its 16th sanction package targeting entities related to the conflict in Ukraine.
In a statement released on 24 February, the EU Garrantex identified as an important player in facilitating Russia’s efforts to circumvent financial limitations.
The Council called the close association of the stock market with Russian banks that are already under EU sanctions as a primary reason for the measure. This movement marks the first time that the EU has immediately punished a Russian crypto exchange.
The latest sanctions from the EU try to limit Russia access to financial resources and his ability to finance military operations. By focusing on GARANTEX, the EU wants to close financial loops with which Russia can bypass economic limitations through crypto.
Remarkable, CryptoSlate Earlier, Russians had used to digital assets such as Bitcoin and Tether’s USDT to neutralize the impact of Western sanctions on the economy.
In the meantime, the package includes restrictions on 48 people and 35 entities, which increases the total number of sanctioned persons and organizations to more than 2,400.
The EU stated that these sanctioned entities actively support the Russian war efforts. As a result, their assets are now frozen and EU citizens and companies are forbidden to carry out transactions with them. In addition, individuals on the list are confronted with travel prohibitions, limiting their movement within the EU member states.
In addition to Garrantex, the sanctions apply to Russian oil transport companies, a Chinese satellite image company, media propagandists, business figures and political entities. These measures are intended to sharpen the economic and financial pressure on the war -related networks of Russia.
This action against Garrantex follows earlier restrictions imposed by the United States and the United Kingdom. In 2024, researchers in both countries investigated the role of exchange in processing around $ 20 billion USDT.
To this end, the American treasury accused the Garrantex of not complying with anti-money laundering practices (AML) and regulations for the fight against terrorism (CFT), so that illegal transactions can take place on its platform.
As a result. The portfolios of the Exchange are now on the list of the US Office of Foreign Assets Control (OFAC) specially designated Nationals (SDN) list.