UK Imposes Sanctions on Crypto Exchanges Accused of Helping Russia Evade Restrictions

The UK has taken a significant step in its efforts to combat Russia's alleged use of cryptocurrencies to bypass sanctions and support its war efforts in Ukraine.

As part of a broader crackdown on Russia's illicit financial infrastructure, the UK Foreign Office has imposed new sanctions on several cryptocurrency exchanges, payment companies, and individuals accused of facilitating sanctions evasion.

The targeted firms include Huobi Global S.A., which operates as HTX, along with Rapira Group LLC, Aifory LLC, Arvix LLC, and Bitpapa IC FZC LLC. These entities are suspected of being linked to the A7 payments network and Garantex, a Russian crypto exchange already sanctioned by Western authorities.

The new sanctions extend restrictions previously aimed at sanctioned banks under Regulation 17A of the UK's Russia sanctions regime.

Under the new rules, UK financial institutions and crypto service providers are prohibited from maintaining business relationships or processing transactions tied to sanctioned entities. Compliance measures may also require firms to trace blockchain transactions across multiple wallet connections and exchanges.