China has taken a new step in its crypto sanctions campaign, targeting two Lithuanian banks – UAB Urbo Bankas and AB Mano Bankas – with the move announced on August 13th by the Ministry of Commerce. This follows last month’s EU decision to sanction Chinese financial institutions for allegedly facilitating Russia’s access to cryptocurrency services that could circumvent Western restrictions. However, Lithuanian bank executives stated they lack active business ties with China, suggesting Beijing’s actions are largely symbolic. Analysts see this move as part of a larger political dispute between the two countries stemming from Lithuania allowing Taiwan to open its representative office under its own name – an action that triggered Beijing’s downgrading diplomatic relations. Brussels will review China’s decision before issuing a formal response. Meanwhile, Chinese authorities have accused the EU of violating international law and damaging legitimate Chinese business interests, demanding the sanctions be lifted. This dispute highlights the increasing role of cryptocurrency services in global sanctions enforcement. Similar measures already pressured some Chinese state banks to restrict dealings with Russian clients under threat of U.S. secondary sanctions, emphasizing financial tools as a key weapon in geopolitical conflicts.