The European Union has placed Justin Sun-linked HTX among 18 crypto companies accused of helping Russian users evade financial sanctions.
Summary
- EU lists Justin Sun-linked HTX among crypto firms accused of helping Russians evade sanctions.
- HTX faces transaction restrictions, but the EU action does not include an asset freeze.
- Separate rules will restrict Belarusian ownership of MiCA-regulated crypto firms from Aug. 25.
According to Reuters, the EU published the list on Friday after adopting its latest restrictions on Thursday, adding another regulatory challenge for one of the world’s largest crypto exchanges.
HTX, formerly known as Huobi, did not immediately respond to Reuters’ request for comment on the EU action. The exchange was founded in China in 2013, while Sun acquired a controlling stake in 2022, although the company describes the Tron founder as an adviser.
EU authorities included the crypto companies in the bloc’s 21st sanctions package against Russia over the war in Ukraine. The measures cover banks, crypto networks, oil traders, energy revenue channels and vessels suspected of operating within Russia’s shadow fleet.
While Reuters reported that 18 companies offering crypto services appeared on the published list, the Council of the European Union separately said it had extended transaction restrictions to 14 crypto-related platforms. Those services operate from Georgia, Panama, the United Arab Emirates, the Marshall Islands, Kyrgyzstan and Belarus.
The difference relates to how the measures count companies and the platforms they operate. According to the Council, the 14 services were targeted because EU authorities linked them to financial channels used by Russia to bypass existing restrictions.
HTX faces transaction limits rather than an EU asset freeze
Unlike a full sanctions designation, the EU measure against HTX does not require the exchange’s assets to be frozen, Reuters reported. The restriction instead places HTX within the group of crypto businesses covered by the package’s transaction controls.
For the first time, the package also gives the EU a mechanism to prohibit dealings with crypto providers in third countries when authorities determine that those services are helping Russia evade sanctions. The Council described the tool as a deterrent for jurisdictions hosting such platforms.
HTX had already faced sanctions in the United Kingdom. On May 26, British authorities targeted Huobi Global S.A., the Panama-based company behind HTX, over alleged financial services involving A7 and Garantex, two entities previously sanctioned over their links to Russia.
The UK Foreign Office alleged that HTX provided services to A7, a payments network backed by Russian state-controlled Promsvyazbank, and Moscow-based crypto exchange Garantex. British restrictions included an asset freeze and barred UK companies from processing payments or maintaining financial relationships with the designated entities.
Responding to the UK action, an HTX spokesperson rejected suggestions that the exchange disregarded regulatory requirements.
“Regulatory compliance remains our absolute top priority at HTX. We proactively monitor and strictly adhere to regulatory frameworks in all jurisdictions where we operate globally, including the UK,” the spokesperson told Reuters.
The exchange has not issued a corresponding response to the EU restrictions. Its earlier statement addressed only the British allegations and did not comment on the findings behind the EU package.
Beyond crypto, the Council imposed asset freezes and funding restrictions on 94 banks and major financial institutions. Transaction bans were also extended to another 33 Russian credit and financial institutions, one Kyrgyz bank connected to Russia’s System for Transfer of Financial Messages and three other non-Russian banks accused of helping circumvent sanctions.
EU crypto controls now reach ownership and management
Adopted on July 23, the package contains 218 individual listings, including 48 people and 170 entities. The Council called it the bloc’s largest batch of new listings in four years, spanning financial services, energy companies, military suppliers and organizations accused of supporting sanctions evasion.
EU High Representative Kaja Kallas stated that the measures cover more than 100 banks and crypto operators, over 40 vessels tied to Russia’s shadow fleet and several refineries in Russia and Belarus. More than 50 listings involve Russia’s military-industrial sector, including businesses connected to long-range drone production, according to Kallas.
Separate restrictions adopted through Council Decision (CFSP) 2026/1847 will also affect Belarusian participation in the EU crypto industry. Beginning Aug. 25, Belarusian nationals and residents will be prohibited from owning, controlling or managing crypto-asset service providers regulated under the Markets in Crypto-Assets framework.
Previous restrictions focused on companies offering crypto wallets, accounts and custody services. The amended rules expand the ban to every service category defined under MiCA, including operating trading platforms, exchanging crypto assets, executing client orders, processing transfers, placing tokens, providing investment advice and managing portfolios.
The Belarus measure entered into force on July 24, one day after its adoption, although the crypto ownership and management provisions have a one-month implementation period. It follows the end of MiCA’s transition window on July 1, after which unauthorized crypto firms were required to stop operating or face enforcement measures.
Together, the two decisions place foreign crypto platforms and ownership roles inside regulated EU firms under separate sanctions controls. HTX now faces transaction restrictions connected to alleged Russian activity, while Belarusian nationals and residents will encounter direct limits on their participation in MiCA-authorized businesses.
