UK sanctions crypto network as bank-equivalent over $90B flows

The Foreign, Commonwealth & Development Office on May 26, 2026 sanctioned 18 crypto firms and individuals and applied Regulation 17A of the Russia sanctions regime to parts of the crypto sector for the first time. The rule requires UK banks and other financial firms to freeze assets and end correspondent relationships with the listed entities.

The measures target the A7 network, which UK authorities describe as a Kremlin-backed payments system formed in October 2024. UK ownership records cited by officials show a majority stake held by Ilan Shor, an Israeli‑Moldovan businessman convicted in 2017 in relation to Moldovan bank fraud who later acquired Russian citizenship, and a minority stake held by Promsvyazbank, a Russian state-owned bank sanctioned in 2022.

The government said Vladimir Putin participated virtually when A7 opened a branch in Vladivostok in September 2025. A7 has since opened offices in Lagos and Harare, according to the UK statement.

UK officials quoted a claim by the A7 network that it processed more than $90 billion in 2025. Blockchain analytics firm Chainalysis reported $93.3 billion in transactions for A7A5, a ruble-backed stablecoin that serves as the network’s primary settlement token, over a similar period.

A7A5 is issued by Old Vector LLC, a Kyrgyz-registered entity, and is reportedly backed by ruble deposits held at Promsvyazbank. UK officials and transaction monitors say users migrated to A7A5 and successor trading venues after US enforcement actions and freezes affected other stablecoins and exchanges.

The sanctions notice cites tracing from analytics firms. One firm reported about $4.9 billion in direct transfers from HTX to UK-designated entities since 2021, including roughly $1.95 billion to Garantex in 2022 and about $838 million to A7 in 2025. The UK also assessed that at least one exchange in the network routed about $1.5 billion back toward the Kremlin.

HTX disputed the allegations in a public statement, arguing the UK measures appear to refer to Huobi Global S.A., a separate legal entity, and that its exchange operations and user funds remain unaffected. The company said it will engage directly with UK authorities.

The UK framed the package as part of wider measures that have removed more than $450 billion from Russia’s economy since 2022 through asset freezes, SWIFT exclusions and limits on dollar clearing. UK officials pointed to a rise in crypto-based sanctions evasion in 2025 and cited data showing sanctioned entities received roughly $104 billion through digital asset channels that year, with stablecoins accounting for a large share of that volume.

The European Union added A7A5 and related services to its twentieth Russia sanctions package in April 2026. The UK action extends that regulatory approach by applying bank-style legal powers to exchanges and other crypto infrastructure providers connected to the A7 network.