Sanctions — 2026-05-28

UK Sanctions Crypto Networks and A7 Network Used to Finance Russia War in Ukraine

BLUFExtending Regulation 17A to crypto exchanges converts UK sanctions compliance into a multi-hop blockchain tracing obligation, setting a template allied regulators are likely to copy and materially raising operating costs across the digital asset sector.

On May 26, the UK FCDO designated 18 entities and individuals targeting Russia's use of cryptocurrency exchanges and what the government described as the Kremlin-backed A7 payments network 1. Named designees include Huobi Global S.A. (HTX), EXMO, Bitpapa, Kyrgyzstan's Eurasian Savings Bank, a USDKG stablecoin issuer, and four individuals including Israeli national Liran Cohen 23. The UK government stated the A7 network claimed to have processed more than $90 billion last year and assessed HTX as suspected of channeling over $1.5 billion into Russian accounts 1. Blockchain analytics firm Elliptic, as reported by CoinDesk, noted the UK for the first time applied Regulation 17A of its Russia sanctions regime to crypto exchanges, a mechanism previously reserved for sanctioned banks, with compliance obligations that can extend to multi-hop blockchain transaction tracing 2.

Analysis
Regulation 17A's first application to crypto exchanges extends banking-style correspondent-relationship prohibitions into digital asset markets, requiring UK-authorized firms to trace blockchain transactions across multiple hops rather than screening only direct counterparties. The compliance cost falls immediately on any UK-regulated provider with indirect exposure to the 18 designees. Sourced from a single FCDO press release rather than independent reporting, the simultaneous targeting of A7, a Kyrgyz bank, and Georgian exchange operators reflects London's view that sanctions evasion is a multi-jurisdictional supply chain requiring structural disruption. HTX may have already reduced direct Russian exposure under earlier Western scrutiny, limiting real impact to reputational cost. Elliptic's observation that allied regulators are watching positions this as a compliance template for allied jurisdictions.
4 sources
  1. UK cracks down on backdoor Russian sanctions evasion with tough new measures - UK FCDO
  2. UK sanctions Huobi and ruble stablecoin issuer in crackdown on Russia crypto networks - CoinDesk
  3. Britain Imposes New Sanctions on Russian Crypto Infrastructure - The Moscow Times
  4. UK sanctions crypto exchanges and "A7 network" in crackdown on Russian evasion systems - Euromaidan Press

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