The European Union has recently included cryptocurrency exchange HTX, formerly known as Huobi, in its 21st package of restrictive measures against Russia. Adopted by the Council of the European Union on July 23, 2026, and published the following day, the sanctions impose a transaction ban on HTX, alleging the platform has played a significant role in frustrating the bloc's existing measures against Russia's ongoing war in Ukraine.
EU Imposes Transaction Ban
The EU's action against HTX differs in scope from earlier sanctions imposed by the United Kingdom. While the UK's measures included an asset freeze, the EU's 21st package primarily implements a transaction ban. This means that operators within the European Union are now prohibited from directly or indirectly engaging in transactions with HTX. The Council of the European Union emphasized that this package significantly expands action against Russia's financial and banking sector, which it views as a central pillar of Russia's war economy. The aim is to further weaken Russia's ability to fund its military aggression.
The decision to target HTX comes amid broader efforts to curb the flow of funds that could be used to circumvent sanctions. EU officials accuse the designated entities, including HTX, of facilitating sanctions circumvention by enabling Russians to move funds outside traditional banking channels, which are increasingly monitored by Western authorities.
Broader Crypto Crackdown and New Tools
HTX is one of 14 crypto service providers outside the EU that have been specifically added to the transaction ban list, accused of helping Russian users bypass financial restrictions. The 21st sanctions package also introduces a novel and significant tool: the possibility of a full third-country ban for crypto-asset services. This new instrument will enable the EU to ban any transaction between an EU operator and any crypto provider from a non-EU country if that jurisdiction is found to be hosting platforms actively assisting Moscow in circumventing existing EU sanctions. This marks a notable escalation in the EU's efforts to prevent the use of digital assets for sanctions evasion, extending enforcement beyond individual wallets and smaller payment providers to major platforms capable of processing substantial cross-border volumes.
The package also includes asset freezes and transaction prohibitions on 94 Russian banks and major financial institutions, 33 additional Russian credit and financial institutions, and targets other non-Russian banks for circumventing sanctions. This comprehensive approach highlights the EU's determination to close all avenues for sanctions evasion, including those within the digital asset space.
HTX's History and Prior Sanctions
HTX, originally founded in China in 2013 as Huobi, has grown to become one of the world's largest cryptocurrency exchanges. In 2022, Hong Kong-based billionaire Justin Sun acquired a controlling stake in the exchange, although the company often refers to him as an advisor. The EU's recent action follows similar, though more stringent, sanctions imposed by the United Kingdom in May. The UK targeted Huobi Global S.A., the Panama-based company behind HTX, with an asset freeze and a ban on British firms handling payments, citing alleged links to Russia-linked financial networks. In response to the UK sanctions, an HTX spokesperson stated the exchange's absolute top priority is regulatory compliance, affirming its adherence to frameworks in all operating jurisdictions.
What to Watch
The inclusion of HTX in the EU's sanctions list is expected to significantly increase the compliance burden for the exchange and may lead regulated financial entities to exercise greater caution in their dealings with the platform. This latest development underscores a growing global trend among regulators to tighten oversight on the cryptocurrency sector, particularly concerning its potential use in circumventing international financial restrictions. Future developments will likely focus on the practical implementation of these transaction bans and any responses from HTX or other affected crypto service providers. The EU's new mechanism for broader third-country bans also signals a potential for further widespread restrictions on crypto platforms if circumvention efforts persist, indicating a sustained and evolving regulatory landscape for digital assets.
Original announcement: Council of the European Union