UK sanctions crypto exchanges including HTX over Russia war

The United Kingdom has imposed a new wave of sanctions targeting cryptocurrency exchanges and financial networks it says are used by Russia to evade international restrictions and fund its war against Ukraine. The measures, announced on May 26, designate 18 entities and individuals, including the major crypto exchange HTX.

Authorities allege the targeted entities form a coordinated financial pipeline supporting Russia’s war economy. A central focus is the Kremlin-backed A7 payments network, which officials state processed over 90 billion pounds last year to facilitate military procurement and move proceeds from Russian oil sales. The sanctions package also includes a bank in Kyrgyzstan suspected of facilitating payments for the network, as well as several companies registered in Georgia and the United Arab Emirates.

For the first time, the UK applied Regulation 17A of its Russia sanctions regime to crypto platforms, a tool previously used against traditional banks. This requires UK financial institutions and registered crypto service providers to freeze assets, trace blockchain transactions, and sever correspondent banking relationships with the sanctioned entities. The...