Switzerland tightens Russia sanctions with new crypto transfer restrictions

Switzerland has tightened its sanctions regime concerning Russia, introducing new restrictions that affect cryptocurrency transfers and certain Russian cryptoassets. The measures came into force following Federal Council action aligning Switzerland with the European Union’s 20th sanctions package against Russia.

The changes have direct relevance for Swiss financial intermediaries and may affect individuals and businesses making cross-border payments from or through Switzerland. In particular, the measures prohibit sanctioned entities from using Russian platforms for cryptocurrency transfers and restrict the development of certain Russian cryptoassets.

What the new measures cover

The latest measures extend the sanctions framework into specific areas of crypto-related activity. They target the use of Russian platforms for cryptocurrency transfers by sanctioned entities, as well as the development of certain Russian cryptoassets.

The restrictions are significant because cryptocurrency transfers can form part of cross-border financial activity alongside conventional bank payments and money-transfer services. Bringing these activities within the sanctions regime clarifies that relevant restrictions and compliance duties are not limited to transfers made through traditional payment channels.

The measures do not mean that every international payment or every cryptocurrency transfer connected with Russia is automatically prohibited. Their effect depends on factors such as whether a sanctioned person or entity is involved and whether the activity falls within the specified restrictions.

Duties for Swiss financial intermediaries

Financial intermediaries are required to block assets belonging to sanctioned individuals and report affected relationships to the authorities. These obligations make sanctions screening an essential part of processing relevant payments and managing customer relationships.

For customers, this means that a bank or other financial intermediary may need to examine the parties and services involved in a transfer before processing it. The involvement of a sanctioned person or entity can therefore prevent a transaction from proceeding and trigger asset-blocking and reporting requirements.

The same compliance considerations apply when crypto-related services are involved. Using cryptocurrency does not remove a transaction from the scope of applicable sanctions measures.

Why this matters to people in Switzerland

People living in Switzerland often use international payment services for family support, business payments or managing finances across countries and currencies. The updated sanctions regime is particularly relevant when a transaction has a connection to Russia, a sanctioned party, a Russian cryptocurrency transfer platform or one of the cryptoassets covered by the measures.

The practical issue is not simply the currency being sent. Financial intermediaries must consider the identities of the parties and the structure of the transaction. A payment routed through several services or involving cryptoassets may still be affected if a sanctioned individual, entity or prohibited platform is involved.

Businesses operating across borders should also be aware that the measures cover financial relationships, not only individual transfers. If a customer, supplier or other counterparty is sanctioned, the Swiss financial intermediary handling the relationship has duties to block affected assets and report the relationship to the authorities.

Practical considerations for international transfers

Before initiating a Russia-related payment or crypto transfer, customers should provide accurate information about the sender, recipient and intended transaction. Complete information helps the financial intermediary assess whether the payment is affected by sanctions requirements.

People using crypto-related services should not assume that a transfer is permitted merely because it takes place outside the conventional banking system. The new prohibitions specifically address Russian cryptocurrency transfer platforms and certain Russian cryptoasset activities.

If a transfer could involve a sanctioned person, entity or covered platform, it is sensible to clarify the position with the financial intermediary handling the transaction before sending funds. Customers should also be prepared for the intermediary to conduct sanctions checks and to refuse or block activity where required.

These measures underline the importance of looking beyond the quoted exchange rate or transfer fee when arranging an international payment. The parties, platforms and assets involved can determine whether a transaction can legally proceed.

What changes in practice

The main practical change is the clearer extension of Russia-related sanctions controls to specified cryptocurrency platforms and cryptoasset activities. At the same time, the established responsibilities of financial intermediaries remain central: assets connected with sanctioned individuals must be blocked, and affected relationships must be reported.

For people and businesses in Switzerland, the safest approach is to use transparent payment arrangements and provide correct details to the regulated intermediary processing the transaction. Russia-related transfers and relevant crypto activities may require additional scrutiny, particularly where there is uncertainty about a counterparty or platform.

Conclusion

Switzerland’s latest Russia-related sanctions measures strengthen controls over both conventional financial relationships and specified cryptocurrency activity. Anyone making a potentially affected cross-border transfer should consider not only where the money is going, but also who is involved, which platform is being used and whether the transaction concerns a restricted cryptoasset activity.

Sources

Sanktionen: Russland — FINMA (Swiss Financial Market Supervisory Authority) — https://www.finma.ch/en/news/2026/08/20260820-sr/