The UK government has imposed new sanctions targeting three cryptocurrency exchanges and two payment platforms it says were helping Russian-related entities bypass financial restrictions. The move, announced by the UK Foreign, Commonwealth & Development Office (FCDO) on Thursday, aims to make it more difficult for sanctioned parties to access funds and move value through crypto rails.
According to the FCDO, three of the designated service providers are linked to Kyrgyzstan. The UK also alleges that two of the payment platforms supported transaction activity associated with A7, a financial network described by the Foreign Ministry as Kremlin-backed.
Key takeaways
- The UK sanctioned three crypto exchanges and two payment processors suspected of facilitating Russia-linked sanctions evasion.
- The FCDO says multiple targets are connected to Kyrgyzstan and at least some activity ties into the A7 network.
- UK officials argue the sanctions disrupt pathways for sanctioned entities to move and access funds.
- Chainalysis linked two payment processors—Cryptomus and Heleket—to large volumes of flows from thousands of illicit counterparties in late 2025.
- CertiK reported that an A7A5 stablecoin processed $110 billion in cumulative onchain transactions through June, indicating continued activity despite sanctions.
UK sanctions expand beyond exchanges to payment processors
While sanctions often focus on exchanges, the UK’s latest action also targets payment platforms. In its announcement, the FCDO said the affected services were suspected of enabling Russian entities to circumvent financial sanctions.
The designation includes three cryptocurrency exchanges and two payment providers. The UK highlighted a Kyrgyz connection for multiple service providers, suggesting the sanctions are aimed at disrupting not only individual platforms but also the wider infrastructure that may support cross-border value movement.
The Foreign Ministry’s rationale is straightforward: reducing access to specific crypto on-ramps and payment channels can constrain the ability of sanctioned actors to obtain liquidity or transfer value.
A7 network ties feature prominently in the UK’s case
A central theme in the UK’s announcement is the alleged connection to A7, a financial network described by the Foreign Ministry as Kremlin-backed. The UK said two of the sanctioned payment platforms facilitated transactions tied to A7.
The Foreign Ministry also cited A7’s own reported scale, stating that the network claimed to have moved more than $90 billion last year. The statement frames that figure as nearly half of Russia’s annual military expenditure, underscoring the UK’s argument that the network could be a material component of war-related financing channels.
In addition, one of the sanctioned exchanges—TokenSpot, described as Kyrgyzstani—was also linked to A7, according to the same UK reporting.
Chainalysis findings: high-volume links to illicit counterparties
Blockchain analytics firm Chainalysis provided additional detail supporting the UK’s claims. In a blog post published alongside the sanctions news coverage, Chainalysis said it found that two sanctioned payment processors, Cryptomus and Heleket, received funds from thousands of illicit counterparties.
Chainalysis reported that the number of counterparties peaked at 900 entities within a single month in late 2025. The implication is not just that funds arrived from sanctioned or illicit actors, but that the activity occurred at scale and at a heightened point in time.
Chainalysis also connected another sanctioned platform—TokenSpot—to the A7-related footprint. The firm determined that TokenSpot, along with Grinex and Meer, received more than $308 million from the same HTX deposit address.
These findings matter for investors and market participants because payment processors and deposit channels can function as chokepoints. When sanctions target those chokepoints, downstream actors face higher compliance risk and may find it harder to source or route funds without attracting scrutiny.
Context: prior UK sanctions on HTX (Huobi Global) and A7A5 growth
This is not the first time the UK has taken aim at crypto infrastructure linked to Russia-related activity. In May, UK authorities included Huobi Global—the operator of crypto exchange HTX—in a sanctions package targeting alleged backdoor evasion measures.
According to Cointelegraph’s earlier coverage, HTX pushed back against the designation, arguing that the UK’s designation applies to Huobi Global as a separate legal entity and maintaining that its online exchange and user funds were not affected. The company response indicates the legal and operational complexity that often follows sanctions, including differences between entity-level designations and user-level impact.
At the same time, reported onchain activity tied to A7-related stablecoins appears to have continued. CertiK reported that the Russian ruble-backed A7A5 stablecoin processed $110 billion in cumulative onchain transactions up to June.
For readers tracking the effectiveness of sanctions, this creates a key tension: the UK is tightening restrictions on specific exchanges and payment platforms, while independent monitoring indicates that A7-linked token activity continues to operate at significant scale. That doesn’t necessarily contradict the sanctions’ intent—restrictions can redirect flows, reduce accessibility for some actors, or increase transaction friction—but it does highlight that enforcement alone may not immediately eliminate usage.
Notably, Cointelegraph said it contacted TokenSpot, Cryptomus, and Heleket for comment regarding the allegations.
What to watch next
The immediate question for compliance teams and market participants is whether the sanctioned platforms will cut off access quickly, whether activity shifts to alternate providers, and how A7-linked stablecoin ecosystems respond operationally. As analytics firms continue to map deposit addresses, counterparties, and payment routes, the next phase of enforcement may hinge on identifying replacement infrastructure used to sustain similar flows.
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