The United Kingdom has imposed a fresh wave of sanctions on Kyrgyz financial institutions and cryptocurrency networks, which are accused of helping Russia evade Western sanctions.
The measures, aligned with ongoing US efforts, focus on entities funneling money for the war in Ukraine, supporting Kremlin operations abroad, and backing the Russian ransomware ecosystem.
The sanctions come shortly after US officials renewed restrictions on several crypto exchanges, including those providing infrastructure for Kyrgyz-based token A7A5, described by the British government as “specifically designed to evade Western sanctions.”
Sanctions freeze billions in assets linked to Kremlin money flows
Britain’s sanctions target Old Vector, the Kyrgyz company issuing A7A5, which has “processed over $51.17 billion” since its launch, according to Chainalysis. Additional measures target Capital Bank and its director, Kantemir Chalbayev, which the UK says Russia uses to pay for military goods. All UK-based assets of the sanctioned entities are frozen.
UK sanctions minister Stephen Doughty warned that the Kremlin was using “dodgy crypto networks” to fund its war efforts. He said the measures aim to “keep up the pressure on Putin at a critical time and crack down on illicit networks funneling money into his war chest.”
Research from the Organized Crime and Corruption Reporting Project (OCCRP) links the sanctioned entities to George Rossi, believed by the National Crime Agency to be a central figure in a Russian money-laundering network connected to drug traffickers, cybercriminals, Moscow elites evading sanctions, and even Kremlin espionage operations.
The UK’s move also complements earlier US sanctions against Keremet Bank by targeting Altair Holding, a Luxembourg-based firm that acquired bank control last year. While US sanctions carry the most weight due to dollar-based transactions clearing through New York, the British measures block access to London’s financial and legal services.
“If the Kremlin thinks they can hide their desperate attempts to evade sanctions through dodgy crypto networks, they are sorely mistaken,” Doughty said. “Alongside our allies, we will continue to support the US-led drive to end this illegal war and secure a just and lasting peace.”
Global stablecoin race heats up as UK and China eye digital currency strategies
Meanwhile, several major crypto firms are pushing for the UK to establish a national stablecoin strategy to enable the adoption of the tokens and stay at the same pace as the US on disruptive new technology.
In an open letter to Finance Minister Rachel Reeves, 30 industry figures emphasized that the UK “must act now to avoid being a rule-taker rather than a rule-maker in the digital asset era.”
To ensure the UK is at the forefront, the letter emphasized that a proactive, coordinated national strategy is needed to position stablecoins not as a risk to be contained but as a financial infrastructure to be responsibly embraced.
As previously reported by Cryptopolitan, China is also reportedly exploring the use of yuan-backed stablecoins for the first time, aiming to expand global adoption of its currency, a major shift in its approach to digital assets.
Sources said that the State Council, China’s cabinet, is set to review and potentially approve a roadmap later this month to expand the yuan’s global use, including efforts to keep pace with the US push on stablecoins.
The plan is expected to set targets for the use of the Chinese currency in global markets and define the responsibilities of domestic regulators, while also providing guidelines for risk prevention.
The country’s top leaders are expected to hold a study session by the end of this month to discuss yuan internationalization and the growing global momentum of stablecoins.
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Source: https://www.cryptopolitan.com/uk-sanctions-russian-linked-crypto-networks/