UK Sanctions Hit Russia Linked Crypto Networks

Britain has added crypto exchanges, payment providers and A7-linked entities to its Russia sanctions list, with the new measures taking effect immediately. The package targets digital asset channels that UK officials say helped move money around existing restrictions tied to the war in Ukraine.

Good to Know

• The UK named 18 crypto exchanges, banks, payment providers, companies and individuals.
• Targets include EXMO Exchange Limited, Rapira Group LLC, Bitpapa IC FZC LLC and Huobi Global S.A.
• Compliance teams now face added pressure because Regulation 17A has been applied to cryptoasset exchanges.

Crypto Exchanges Face A Tougher UK Sanctions Line

The package puts the A7 network and several crypto-linked firms under direct UK restrictions. Officials described A7 as a Russia-linked system used to route funds through shadow financial channels, including Kyrgyzstan-related structures, oil-sale proceeds and military procurement activity.

The British government said: “The UK has today announced a new package of sanctions targeting cryptocurrency exchanges and the ‘A7 network’, used by Russia to evade existing restrictions and channel funds to fuel its barbaric war against Ukraine. These sanctions will come into force immediately.”

Chainalysis said the action covers “18 cryptocurrency exchanges, payment providers, and individuals for helping Russia bypass international trade blockades using digital assets.” Elliptic called it one of the UK government’s widest crypto sanctions packages so far and said Regulation 17A now applies to cryptoasset exchanges for the first time.

That change matters for UK virtual asset service providers. Direct name checks may no longer be enough. Firms need stronger wallet tracing, transaction monitoring and exposure checks when designated exchanges appear anywhere in the payment path.

Stablecoins also sit inside the risk picture. Chainalysis linked A7 to A7A5, a ruble-backed stablecoin issued in Kyrgyzstan, while Elliptic identified OJSC Virtual Asset Issuer as the issuer of USDKG. Both points show why UK sanctions teams now view crypto rails, payment firms and offshore structures as one connected network.

Foreign Secretary Yvette Cooper said: “If the Kremlin thinks it can evade our sanctions by hiding behind crypto networks and shadow financial systems, it is gravely mistaken.”