UK Targets Cryptocurrency Exchanges for Alleged Role in Sanctions Evasion

The UK government has taken a significant step in its efforts to combat sanctions evasion by cryptocurrency exchanges, applying Regulation 17A of the Russia sanctions regime to several entities. The regulation, previously reserved for sanctioned banks, requires all financial firms in the UK to freeze funds and sever correspondent relationships with designated entities.

According to the UK government, these exchanges have allegedly processed $90 billion in transactions for Russia, making them a key part of the country's efforts to circumvent Western sanctions. The A7 network, which is at the center of this effort, has been linked to several sanctioned Russian entities and has expanded into jurisdictions with less stringent regulatory requirements.

The use of Regulation 17A on cryptocurrency exchanges marks a significant shift in how economic warfare is being waged in the UK. This move comes as part of a broader effort to combat sanctions evasion via cryptocurrency, which has surged 694% in 2025 according to Chainalysis's Crypto Crime Report.