UK Sanctions 18 Russia-Linked Crypto Entities, Applying Bank-Like Restrictions to Crypto Exchanges for the First Time

According to CoinDesk, the UK has imposed sanctions on 18 entities and individuals accused of assisting Russia in circumventing Western restrictions and financing its war in Ukraine. Among those sanctioned are the cryptocurrency exchange Huobi Global S.A. (operated by HTX) and the stablecoin issuer Open Joint Stock Company “Virtual Asset Issuer.” This marks the first time the UK has applied Regulation 17A—which targets sanctioned banks—to cryptocurrency exchanges, requiring UK financial institutions and crypto service providers to freeze related funds, trace on-chain transactions, and refrain from maintaining correspondent relationships with or processing payments for sanctioned parties. The sanctions specifically target the A7 payment network.