UK sanctions Russia-linked crypto exchanges and stablecoin issuers

On May 26 the UK government announced a sanctions package that designates 18 cryptocurrency exchanges, payment providers, corporate entities and individuals linked to the A7 network. The measures take effect immediately and target crypto routes believed to have moved funds into Russia.

The package lists exchanges, stablecoin issuers and cross-border payment routes and names entities including EXMO Exchange Limited, Huobi Global S.A., OJSC Virtual Asset Issuer, Bitpapa IC FZC LLC, Nueva Cryptologia S.A.S. de C.V., Arvix Limited Liability Company, Rapira Group LLC, Alistera Limited, Sooty Ltd, Aifory LLC, OJSC State Brokerage Company, Diamond Estate LLC and Trace Road LLC among others.

Government officials described the A7 network as operating through Kyrgyzstan-linked financial channels and as a route used to move proceeds from oil sales and other activities into Russia and to finance military procurement. The sanctions target those channels and intermediaries that convert digital asset liquidity into banked funds.

Regulation 17A has been applied to cryptoasset exchanges as part of the package, extending compliance obligations for UK virtual asset service providers. The rule restricts transfers involving designated entities and can affect correspondent banking relationships that support cross-border settlement of digital assets.

The action highlights stablecoin infrastructure tied to the network. Authorities linked A7 to a ruble-backed stablecoin known as A7A5 and to a token called USDKG associated with OJSC Virtual Asset Issuer. Analysis by compliance firms recorded about $93 billion in first-year trading volume for A7A5 and connected trading activity to platforms that have acted as successors to prior exchanges. Officials flagged those tokens and the platforms that support them as potential channels to move sanctioned funds across borders.

Yvette Cooper, the UK secretary of state for foreign, commonwealth and development affairs, stated: “If the Kremlin thinks it can evade our sanctions by hiding behind crypto networks and shadow financial systems, it is gravely mistaken.”

Compliance firms noted the package will increase regulatory scrutiny of exchanges and payment providers with Russia-facing liquidity. Regulators and compliance teams will monitor how exchanges implement enhanced screening, whether stablecoin issuers change operations to limit exposure, and whether correspondent banks restrict settlement services for designated entities. The measures add to existing sanctions designed to limit routes that allow sanctioned actors to convert digital assets into usable funds.