The United Kingdom sanctioned several crypto exchanges and digital asset firms on May 26 under its Russia sanctions regime, marking the first time the rules have been used directly against crypto platforms. Blockchain analytics firm Elliptic said the measures target companies accused of supporting Russia-linked financial networks, including A7 Limited Liability Company, as UK enforcement expands into sanctions-evasion structures tied to digital assets.
The firms named by the UK government include Bitpapa IC FZC LLC, Exmo Exchange Limited, Aifory LLC, and Rapira Group LLC. Authorities said these businesses provided financial services, funds, or economic resources connected to Russia-linked entities. According to the Foreign, Commonwealth and Development Office, the designations were made under the Russia (Sanctions) (EU Exit) Regulations 2019. The broader package also covered banks, corporate entities, and individuals connected to Russia’s financial sector.
Sanctions list reaches exchanges, individuals, and offshore structures
The designations also included Huobi Global S.A., Nueva Cryptologia SAS de CV, and Arvix LLC, along with Igor Olegovich Gorin, Irina Rafaelyevna Akopyan, Sergey Mendeleev, and Liran Cohen. In parallel, Garantex Europe OU and entities linked to the A7 network were added to the package.
The UK action went beyond exchange operators alone. The measures also targeted businesses tied to cash-to-crypto activity, stablecoin issuance, and offshore trading infrastructure. Officials placed heavy focus on the A7 network, which the source material describes as part of sanctions-evasion activity. The package also named OJSC Virtual Asset Issuer, linked to the USDKG stablecoin, as well as Alistera Limited and Diamond Estate LLC.
Compliance burden rises under Regulation 17A
Elliptic said Britain applied Regulation 17A to crypto exchanges for the first time. Before this, the rule had mainly been used against sanctioned banks after Russia’s invasion of Ukraine. The regulation prevents UK institutions from maintaining correspondent relationships with designated entities. It also bars firms from processing payments tied to sanctioned exchanges anywhere in the transaction chain.
That shifts compliance work well beyond direct counterparty checks. UK virtual asset service providers now need to trace transactions deeper through payment flows and identify indirect exposure linked to sanctioned exchanges and associated wallets. Existing asset-freeze requirements also remain in force, meaning UK institutions must freeze assets owned or controlled by designated entities.
Elliptic said regulators are increasingly treating offshore crypto exchanges as critical infrastructure in sanctions evasion and illicit financial activity. In this case, UK enforcement stretched across exchanges, stablecoin-linked issuers, offshore entities, and the payment routes connected to them.