The United Kingdom has imposed sanctions on three cryptocurrency exchanges as part of a broader initiative involving 38 new designations aimed at financial networks suspected of aiding Russia in evading sanctions.
The Foreign Office identified Xeltox Enterprises, a Canadian company that operates the crypto exchanges Cryptomus, Heleket, and Certa Payments, along with the Kyrgyzstan-based TokenSpot. Additionally, payment services Processing KG, which runs VexPay, and Tsunami Payments, as well as Processing KG's director Ulan Bukabaev, were also sanctioned.
According to government sources, two of the firms in question facilitated transactions involving the A7 network, which is backed by the Kremlin and uses the ruble-pegged stablecoin A7A5 to circumvent financial restrictions. The A7 network reportedly claimed to have moved over $90 billion last year, as stated by the U.K. government.
This latest action follows previous sanctions imposed in May on other crypto exchanges, including Huobi and HTX, which were accused of supporting Russia's efforts to evade sanctions. The U.K. had also previously targeted exchanges like Grinex and Garantex, while the U.S. later focused on the same companies and their executives. There has been some debate among blockchain-data firms regarding the actual volume of A7A5 transactions.
As part of the sanctions, the assets of the listed entities within the U.K. are frozen, and British financial institutions are prohibited from processing payments involving these firms.
The sanctions are part of a comprehensive package addressing Russia’s activities related to its ongoing war in Ukraine, which also includes restrictions on Russian oil companies such as Zaribezjmeft and INK Capita, along with 12 shadow-fleet tankers and suppliers involved in missile and drone manufacturing.
In July, the European Union (EU) implemented its twenty-first sanctions package against Russia, targeting 14 cryptocurrency companies and additional entities connected to the A7 network.