EU bars HTX transactions as it widens Russia crypto sanctions
The European Union has barred transactions with crypto exchange HTX and 13 other platforms to close a sanctions-evasion loophole used by Russian entities, while establishing a mechanism to ban entire jurisdictions.
The European Union will prohibit individuals and companies from transacting with crypto exchange HTX starting Aug. 23 as part of its 21st sanctions package against Russia. The regulation, published in the Official Journal, identifies the target as "HTX (HUOBI GLOBAL SA)" among third-country financial institutions accused of facilitating sanctions evasion. The restriction stops short of a full asset freeze, though it applies comprehensively to both direct and indirect dealings.
Eligible EU, European Economic Area and Swiss residents retain a three-month window following the ban's implementation to apply for authorization to withdraw funds or close their accounts. HTX did not immediately respond to the EU's action. The exchange, originally founded in China in 2013 and closely associated with Tron founder Justin Sun, has previously sought to distance its current branding from its legacy corporate identity.
The UK sanctioned Huobi Global S.A. in May over accusations it supported the Russian government by providing financial services to A7 Limited Liability Company, a Russia-linked cross-border payments firm. Following that British action, an HTX spokesperson told reporters that Huobi Global S.A. was distinct from HTX. The spokesperson added that regulatory compliance remained an "absolute top priority" and that the exchange adhered to the rules in jurisdictions where it operated.
The bloc simultaneously imposed identical Aug. 23 transaction bans on 13 other crypto platforms, including EXMO, BitPapa, Rapira, Aifory Pro, WhiteBird, NoOnecrypto and Exnode. Four additional designations specifically target entities tied to the A7 network. European Commission President Ursula von der Leyen initially announced the package in June, noting it would cover 20 non-EU entities including banks, crypto platforms and oil traders.
Broader jurisdictional threat
Beyond targeting individual platforms, the EU established a provision allowing it to ban transactions with crypto service providers based in any country that "systematically and persistently" fails to prevent Russian sanctions evasion. No countries are currently subject to this restriction, leaving the accompanying annex empty for now. The mechanism acts as a structural deterrent to jurisdictions that might otherwise serve as safe harbors for digital asset platforms moving restricted funds.
The designation of HTX also underscores the escalating tension between routine exchange security practices and Western sanctions enforcement. Blockchain intelligence firm TRM Labs alleged two days prior to the EU decision that HTX rapidly rotated hot wallets and funding addresses across TRON, Ethereum, BNB Smart Chain and Solana following the UK action. HTX rejected that characterization, stating the wallet movements reflected "routine, security-driven platform operations common across the industry."
