Crypto Exchanges Face UK Regulation 17A Action
Britain announced on May 26 a sanctions package aimed at crypto routes used to move funds into Russia. The measures focus on exchanges, payment providers, stablecoin infrastructure, banks, and individuals tied to sanctions-evasion networks. The U.K. government said the package targets cryptocurrency channels and the A7 network, with the measures taking effect immediately.
Crypto-related entities named in the package include EXMO Exchange Limited, Arvix Limited Liability Company, Rapira Group LLC, Alistera Limited, Sooty Ltd, Aifory LLC, Bitpapa IC FZC LLC, Nueva Cryptologia S.A.S. de C.V., Huobi Global S.A., OJSC Virtual Asset Issuer, and OJSC State Brokerage Company. Chainalysis said: “The U.K.’s Foreign, Commonwealth and Development Office (FCDO) sanctioned 18 cryptocurrency exchanges, payment providers, and individuals for helping Russia bypass international trade blockades using digital assets.” The British government stated:
“The UK has today announced a new package of sanctions targeting cryptocurrency exchanges and the ‘A7 network’, used by Russia to evade existing restrictions and channel funds to fuel its barbaric war against Ukraine. These sanctions will come into force immediately.”
A7-related targets form a separate group inside the sanctions package. They include Alistera Limited, OJSC State Brokerage Company, Diamond Estate LLC, Trace Road LLC, Liran Cohen, Igor Gorin, and Irina Akopyan. Officials described A7 as a Kremlin-backed network used to move money through Kyrgyzstan-linked financial channels, finance military procurement, and process oil-sale proceeds.
New UK Sanctions Increase Pressure on Russia Crypto Channels
Elliptic called the action “one of its most expansive cryptoasset-focused sanctions packages to date.” The firm said the U.K. applied Regulation 17A to cryptoasset exchanges for the first time, dramatically expanding obligations for U.K. virtual asset service providers (VASPs). Chainalysis said the rule targets core financial payment channels by cutting off correspondent banking relationships and restricting transfers involving designated entities.
Stablecoin infrastructure forms another risk layer. Chainalysis connected A7 to A7A5, a ruble-backed stablecoin issued in Kyrgyzstan, and said it recorded $93 billion in first-year trading volume. Elliptic identified OJSC Virtual Asset Issuer as the issuer of USDKG. The analysis also linked Grinex to A7A5 trading and described Grinex as Garantex’s successor.
Secretary of State for Foreign, Commonwealth and Development Affairs of the United Kingdom Yvette Cooper said:
“If the Kremlin thinks it can evade our sanctions by hiding behind crypto networks and shadow financial systems, it is gravely mistaken.”
For crypto markets, the sanctions package increases pressure on exchanges and payment networks linked to Russia-facing liquidity flows. The measures also widen scrutiny around stablecoin infrastructure, cross-border settlement channels, and platforms associated with sanctioned Russian crypto activity.
