EU adds HTX to Russia sanctions list, barring transactions starting Aug. 23

Quick Take

• The European Union added HTX to a list of third-country financial and crypto service providers accused of helping Russia circumvent sanctions, with a transaction ban set to take effect on Aug. 23.
• The measure does not impose an asset freeze, but generally bars people and companies in the EU from dealing directly or indirectly with the exchange.
• The bloc also created a broader mechanism to prohibit dealings with crypto platforms based in countries that repeatedly fail to prevent Russian sanctions evasion, although no countries have yet been added.
• Other crypto platforms listed alongside HTX include EXMO, Rapira, BitPapa, Aifory Pro, WhiteBird, NoOnecrypto and Exnode, among others.

The European Union has added crypto exchange HTX to its Russia sanctions regime, prohibiting people and companies in the bloc from transacting with the platform beginning next month.

The EU identified "HTX (HUOBI GLOBAL SA)" among a group of third-country financial institutions and crypto service providers that it said were significantly frustrating restrictions imposed over Russia's invasion of Ukraine, according to a regulation published in the bloc's Official Journal. The restriction takes effect on Aug. 23.

Under the applicable rules, EU operators will be barred from engaging directly or indirectly in transactions with HTX. The measure stops short of a full designation or asset freeze, Reuters reported. Eligible EU, European Economic Area and Swiss nationals and residents may seek authorization to withdraw funds or close accounts, but must apply within three months of the ban taking effect.

The legal document's identification of the exchange as "HTX (HUOBI GLOBAL SA)" contrasts with a statement an HTX spokesperson gave The Block after the United Kingdom sanctioned Huobi Global S.A. in May. The spokesperson said at the time that Huobi Global S.A. was distinct from HTX.

Ursula von der Leyen, president of the European Commission, first announced the sanctions package in June and said it would extend to 20 non-EU entities, including banks, crypto platforms, and oil traders that have been servicing sanctioned Russian entities and individuals, but did not name HTX at the time.

The UK said it had reasonable grounds to suspect that Huobi Global S.A. supported the Russian government by providing financial services or making funds and other resources available to A7 Limited Liability Company, a Russia-linked cross-border payments firm. HTX said following the British action that regulatory compliance remained an "absolute top priority" and that it adhered to the rules in jurisdictions where it operated.

The EU action also comes two days after blockchain intelligence firm TRM Labs alleged that HTX had been rotating hot wallets and funding addresses across TRON, Ethereum, BNB Smart Chain and Solana following the UK sanctions. TRM said addresses were rotated and retired within hours, making screening systems built around static sanctions lists less effective.

HTX rejected TRM's characterization, telling The Block that the wallet movements reflected "routine, security-driven platform operations common across the industry."

The HTX restriction forms part of the EU's 21st sanctions package against Russia, which was adopted on July 23. The package designated 218 individuals and entities, the largest batch of listings in four years, while separately expanding transaction restrictions covering banks, crypto platforms, oil traders and other entities. The Council said it also added four designations tied to the A7 network and extended its transaction ban to 14 crypto-related service platforms.

Other crypto platforms listed alongside HTX include EXMO, Rapira, BitPapa, Aifory Pro, WhiteBird, NoOnecrypto and Exnode. The restrictions against those platforms are also scheduled to take effect on Aug. 23.

The package goes beyond targeting individual exchanges. A new provision allows the EU to prohibit transactions with crypto service providers established in a country that has "systematically and persistently" failed to stop platforms from undermining the bloc's sanctions. The accompanying annex naming countries subject to that restriction is currently empty, meaning the EU has established the mechanism without yet applying it to an entire jurisdiction.

HTX did not immediately respond to The Block's request for comment on the EU action. The exchange was founded as Huobi in China in 2013 and is closely associated with Tron founder Justin Sun, whom HTX has described as an adviser.