Crypto Sanctions Conflict? China Responds to EU’s Actions With Countermeasures

In response to the European Union’s (EU) recent choice to impose sanctions on a number of Chinese entities for allegedly facilitating digital currency transactions linked to sanctions against Russia, Beijing has swiftly initiated its own retaliatory actions.

China’s Ministry of Commerce criticized the EU’s sanctions as “politically driven” and “without factual support.”

On 13 August 2025, China declared counteractions against two Lithuanian financial institutions after they included two Chinese banks in their sanctions against Russia.

Local media reported that “organizations and individuals in China are barred from engaging in related transactions, collaborations, and other activities with the two EU financial institutions, UAB Urbo Bankas and AB Mano Bankas, the ministry indicated, referencing the country’s Anti-Foreign Sanctions Law and the regulations for implementing this law.”

China is done being the nice guy
If anyone infringes on China, China will retaliate
In 24 hours, China sanctioned
Czech President Pavel
Canada Canola oil
2 EU banks
China targets two EU banks, retaliating to bloc’s Russia sanctions packagehttps://t.co/zxBV5JIlUs

— David Lee (@DavidLe76335983) August 13, 2025

EXPLORE: A New World Currency is Shaping Through BRICS And Is Here

A New Front Emerges In Already Strained China-EU Relations

In early August, the EU rolled out a new set of sanctions aimed at increasing pressure on Russia’s military actions in Ukraine. This package included blacklisting several Chinese companies and individuals suspected of assisting Moscow in bypassing restrictions by facilitating crypto transfers associated with sanctioned entities.

EU regulators alleged these firms provided cryptocurrency wallets, OTC services, or mixing tools to manage digital assets that are connected to Russian interests.

Previously, sanctions were aimed directly at Russian exchanges and crypto facilitators. However, this marks the first instance of China-based institutions being included in those sanctions.

Chinese officials have signaled that they will take “necessary countermeasures” to defend the “legitimate rights and interests” of Chinese enterprises.

Reports suggest that China is examining technology export licenses and implementing stricter oversight on EU-based blockchain and fintech firms operating within the Chinese market. Additionally, Chinese regulators are reportedly auditing EU-affiliated banking partners that are linked to Chinese crypto-related companies.

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Will China Expedite Promotion Of Cross-Border Transactions In e-CNY?

Countries such as China, Russia, and Iran are working together to establish their own global currency known as BRICS. BRICS includes Brazil, Russia, India, China, and South Africa, with more than a dozen additional nations already in agreement.

Collectively, these nations, while individually smaller than the US, account for 40% of the global population. As noted by the IMF, by 2030, BRICS is projected to represent 50% of the world’s GDP.

The US no longer holds a monopoly on global power dynamics.

In 2025, the world is characterized by a division between the G7 nations, including Canada, France, Germany, Italy, Japan, the UK, US, and the European Union, against BRICS.

Similar to BRICS, G7 nations also command 40% of the world’s GDP. This is one of the reasons why, just two years prior, China actively participated in negotiations between Saudi Arabia, the second-largest oil power, and Iran, the 14th largest economy worldwide.

If this were a kickball match, we would observe China organizing the teams and setting the field while America is preoccupied with distractions.

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