REGULATION | The U.K Imposes Banking Sanctions on Leading Crypto Exchange, Stablecoin Issuer for the First Time

The U.K has imposed sanctions on a leading crypto exchange, a stablecoin issuer, and a network of Russia-linked payment firms in what officials described as one of the country’s toughest crackdowns yet on the use of digital assets to evade sanctions tied to the war in Ukraine.

The measures, announced by the U.K. Foreign, Commonwealth & Development Office, targeted 18 entities and individuals allegedly connected to Russia’s ‘illicit financial infrastructure,’ including payment processors, crypto exchanges, and stablecoin issuers accused of helping move funds outside the traditional banking system.

Among the sanctioned firms were

• Huobi Global S.A., operator of HTX, along with
• Rapira Group,
• Aifory,
• Open Joint Stock Company
• Arvix, and
• peer-to-peer crypto platform, Bitpapa.

British authorities said the Open Joint Stock Company ‘Virtual Asset Issuer,’ a Kyrgyzstan-linked entity tied to the ruble-pegged stablecoin, A7A5, been used to facilitate cross-border settlements for Russian interests.

The sanctions mark the first time Britain has applied Regulation 17A of its Russia sanctions regime to crypto exchanges, a banking-style enforcement tool that requires U.K. financial institutions to

• freeze assets,
• trace transactions, and
• cut off correspondent relationships

linked to sanctioned entities.

British officials said the measures specifically target the A7 payments network, which investigators allege processed more than $90 billion in transactions supporting Russia’s wartime economy and sanctions evasion efforts.

Blockchain analytics firm, Elliptic, said HTX was suspected of servicing both the A7 network and Russian crypto exchange, Garantex, which had already been sanctioned by Western authorities before later rebranding as Grinex.

HTX, which processed an estimated $3.3 trillion in trading volume in 2025, said it complies with international regulatory standards and would engage with U.K. authorities regarding the sanctions.

The latest move expands a growing Western effort to target crypto-based sanctions evasion networks. In early 2026, the U.S. Treasury imposed sanctions on two exchanges accused of facilitating transactions tied to Iran’s financial sector marking Washington’s first use of Iran-specific sanctions authorities against crypto trading platforms.

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