In a bold response to ongoing aggression, Ukraine is targeting channels facilitating cryptocurrency transactions that support Russia’s military efforts. This strategic move aims to disrupt the financial networks that allow for the continual funding of conflict.Cryptocurrency sanctions have become vital as traditional methods of financial control prove insufficient in halting the war.

Ukrainian President Volodymyr Zelenskyy has enacted Decree No. 465/2025, which initiates a crackdown on 60 crypto-related firms, predominantly targeting those based in Russia along with several from jurisdictions like Cyprus, Kazakhstan, and the UAE.

This decisive action underscores a clear intent: digital currencies will not serve as a refuge for capital that supports warfare.

Wide-Ranging Impact on Crypto Entities

The recent decree outlines allegations against five cryptocurrency exchanges implicated in facilitating transactions for sanctioned Russian entities, along with nineteen mining operations processing coins associated with individuals under sanctions.

Ukrainian President Zelensky has sanctioned 60 companies aiding Russia’s sanctions evasion via crypto. This includes firms from various countries as Ukraine aims to stymie Russia’s utilization of decentralized finance…

— Wu Blockchain (@WuBlockchain) July 7, 2025

A total of seventeen digital asset issuers currently under US sanctions have also faced restrictions in Ukraine. Additionally, 19 more companies spanning from payment solution providers to international money transfer firms will undergo asset freezes and operational bans.

The sanctions extend beyond companies to include a comprehensive list of 73 individuals, primarily consisting of influential Russian citizens, including high-level officials from the central bank.

Ukraine’s National Security and Defense Council indicates that these measures will coordinate with allies, such as the EU and the US, to echo the sanctions and strengthen restrictions on every possible avenue available to Russia.

Collaborative Efforts Seek to Eliminate Regulatory Gaps

Vladyslav Vlasiuk, Ukraine’s sanctions policy commissioner, emphasized the importance of international collaboration in this new enforcement strategy. The overarching objective is to eliminate loopholes that Russia exploits to maintain its military operations.

President Zelenskyy disclosed alarming figures, indicating that a single firm had funneled “several billion dollars” since January into sectors vital to Russia’s military-industrial framework. This scenario illustrates the critical nature of digital channels for entities under sanctions.

Emerging Stablecoins Indicate Growing Concerns

Recent reports by the Financial Times suggest a concerning increase in cryptocurrency usage within Russian markets. Notably, a new stablecoin named A7A5, which is pegged to the Russian ruble, has reported over $9 billion in transactions within a mere four months on the Grinex exchange.

Currently, more than 12 billion A7A5 tokens circulate, supported by approximately $156 million in reserves located in US-sanctioned Promsvyazbank. The concentration of capital in a few wallets exemplifies how a limited number of entities can control substantial financial flows.

Additionally, five non-Russian entities are now included in the sanctions list: Token Trust Holdings in Cyprus, EXMO RBC in Kazakhstan, AWX Solutions and Crypto Explorer DMCC in the UAE, and Bitpapa IC FZC also in the UAE. Their presence on the list emphasizes how bypassing sanctions often requires collaboration across international borders.

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