The European Council added cryptocurrency exchange HTX, formerly Huobi Global, to its Russia sanctions list in a Thursday decision. EU authorities designated HTX among 18 entities 'providing crypto-assets services or payment services established outside of the Union that are significantly frustrating the purpose of the prohibitions' against Russia. The move forms part of amended measures targeting Russia's actions in Ukraine, where the country continues to face global sanctions following its 2022 military invasion.
EU Council Amends Russia Sanctions Framework
The European Council amended its previous measures 'in view of Russia's actions destabilizing the situation in Ukraine' according to the Thursday decision. EU officials stated the Union has 'repeatedly taken measures to identify financial institutions, credit institutions or entities providing crypto-asset services or payment services that facilitate a continued financial lifeline for Russia's war of aggression against Ukraine, whether by connecting to the system for transfer of financial messages of the Central Bank of the Russian Federation or by enabling the circumvention of Union restrictive measures.'
The decision prohibits any transaction between listed institutions or entities and Union operators.
HTX Previously Stated Compliance Priority
HTX has previously told Cointelegraph that 'regulatory compliance remains [its] absolute top priority' and that the exchange will 'proactively monitor and strictly adhere to regulatory frameworks in all jurisdictions.'
UK Imposed Similar Sanctions in May
The UK government imposed similar sanctions on HTX in May, saying there were 'reasonable grounds to suspect' that the exchange supported Russia's government by using financial services and funds facilitated by sanctioned entities.
The sanctions against HTX came the same day EU officials announced they would prohibit Belarusian nationals and residents from owning, controlling or managing crypto exchanges and digital asset service providers in compliance with the region's Markets in Crypto Assets (MiCA) framework.
FAQ
Why did the EU add HTX to its Russia sanctions list?
EU authorities designated HTX among 18 entities 'significantly frustrating the purpose of the prohibitions' against Russia, alleging the exchange facilitates a financial lifeline for Russia's war in Ukraine by enabling circumvention of Union restrictive measures.
What did HTX say about regulatory compliance?
HTX previously stated that 'regulatory compliance remains [its] absolute top priority' and that the exchange will 'proactively monitor and strictly adhere to regulatory frameworks in all jurisdictions.'
Did other countries impose sanctions on HTX?
The UK government imposed similar sanctions on HTX in May, citing 'reasonable grounds to suspect' the exchange supported Russia's government through financial services and funds facilitated by sanctioned entities.
