China has barred two Lithuanian financial institutions from doing business with its companies and citizens, escalating tensions with the European Union over crypto-related sanctions against Russia.
The move, announced on August 13 by the Ministry of Commerce, affects UAB Urbo Bankas and AB Mano Bankas.
It follows last month’s EU decision to sanction two Chinese lenders for allegedly helping Moscow access cryptocurrency services that could undermine Western restrictions.
Executives at both Lithuanian banks said they have no active business ties with China, suggesting Beijing’s measures are largely symbolic.
Analysts see the step as part of a broader political standoff between the two nations, which began when Lithuania allowed Taiwan to open a representative office under its own name — a move that prompted Beijing to downgrade diplomatic relations.
Brussels said it will examine China’s decision before issuing a formal response. Chinese officials, meanwhile, accused the EU of violating international law and harming legitimate Chinese business interests, demanding the sanctions be reversed.
The dispute highlights the growing role of cryptocurrency services in global sanctions enforcement.
Similar measures have already pressured some Chinese state banks to restrict dealings with Russian clients under the threat of U.S. secondary sanctions, underscoring how financial tools are becoming a core weapon in geopolitical conflicts.
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Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/china-escalates-crypto-sanctions-fight-by-targeting-lithuanian-banks/