The United Kingdom has taken its most aggressive action yet against cryptocurrency platforms suspected of facilitating sanctions evasion for Russia, adding 18 entities to its sanctions list on Tuesday. Among those targeted is Huobi Global S.A., now operating as HTX, a Seychelles-based exchange with ties to blockchain entrepreneur Justin Sun.
Unprecedented Measures
For the first time, London has applied bank-style payment restrictions to cryptocurrency exchanges, going beyond traditional asset freezes. The sanctions package, enacted under Regulation 17A of UK law, blocks correspondent banking relationships and payment services with designated entities. This effectively cuts off their ability to process cross-border transactions through the UK financial system.
Blockchain analytics firm Elliptic noted that this marks the first known application of the UK's correspondent banking measure against crypto exchanges. The sanctions also include internet service cuts, bans on directors, and restrictions on payment processing, creating a comprehensive blockade.
Targeted Networks
The sanctions zero in on what UK authorities describe as Kremlin-linked networks designed to circumvent international trade restrictions. Central to the action is A7, a Russian payment network that officials claim moved over $90 billion in transactions last year. The A7A5 ruble-backed stablecoin alone saw $93 billion in trading volume in its first year, according to Chainalysis, with most activity flowing through Russia-linked platforms.
Other sanctioned entities include Garantex Europe OU, EXMO Exchange, Arvix, Rapira Group, Bitpapa, and Aifory. The list also features Kyrgyzstan's State Brokerage Company and OJSC "Virtual Asset Issuer," which issues the gold-backed stablecoin USDKG.
HTX's Response
HTX, the most prominent name on the list, did not admit wrongdoing but stated that regulatory compliance remains its "absolute top priority." Justin Sun, who serves as an adviser to HTX, posted on X that the firm is aware of the UK designations and remains committed to compliance. The exchange also noted that its operating platform runs separately from the sanctioned entity, suggesting minimal direct impact on its day-to-day operations.
The Financial Times reported that this is the first UK sanctions case against a crypto exchange linked to Sun. HTX had previously faced legal action from the Financial Conduct Authority in February 2026 for illegally promoting crypto services to UK consumers, marking the regulator's first enforcement against a crypto business for marketing violations.
Broader Implications
UK Foreign Secretary Yvette Cooper stated that the government is "tracking down and shutting off the financial lifelines" that support Russia's war economy, warning there will be "no safe havens" for those helping Moscow dodge sanctions. However, Russia's embassy in London dismissed the measures as "unlawful and futile," asserting that Moscow has found ways to manage external pressure.
For UK companies, the sanctions create new compliance challenges. Elliptic warned that wallet attribution and on-chain tracing are now critical, as the rules can apply whenever a designated exchange appears anywhere in the transaction chain, not just as the immediate counterparty. The risk remains that these financial pathways could simply relocate to less regulated jurisdictions, underscoring the difficulty of policing decentralized crypto networks.
