UK slaps sanctions on three crypto exchanges over alleged Russia links
The U.K. government has imposed sanctions on several crypto exchanges and payment platforms, including Cryptomus and TokenSpot, for allegedly facilitating transactions for a Kremlin-backed network. These entities are accused of helping Russia bypass Western financial sanctions through the use of the ruble-pegged stablecoin A7A5.
Why it matters
This action highlights the intensifying global effort to close loopholes in the international financial system that allow sanctioned regimes to utilize cryptocurrency for illicit cross-border transactions.
The Foreign Office named Xeltox Enterprises, the Canadian-registered company behind crypto exchanges Cryptomus, Heleket and Certa Payments, as well as Kyrgyzstan-based TokenSpot. It also sanctioned payment platforms Processing KG, which operates VexPay, and Tsunami Payments, as well as Ulan Bukabaev, a director of Processing KG.
The government said two of the targeted businesses had processed or facilitated transactions involving A7, a Kremlin-backed network that operates ruble-pegged stablecoin A7A5 it says is used to bypass sanctions on Russia’s financial sector. A7 claimed last year to have moved more than $90 billion, according to the U.K. government statement.
The U.K. sanctioned several other crypto exchanges in May, accusing them of helping Russia evade Western sanctions. Among those crypto exchanges were Huobi and HTX.
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