UK sanctions HTX and EXMO over alleged Kremlin money-moving network

The UK Foreign Office (@FCDOGovUK) has sanctioned Huobi Global S.A. (@HuobiGlobal), the Panama-registered entity behind crypto exchange HTX, under its Russia sanctions regime. EXMO, a cryptocurrency exchange popular among Russian-speaking traders, was hit in the same package. The designation imposes an asset freeze, trust services restrictions, and correspondent banking and payment-processing prohibitions.

HTX is one of the largest crypto exchanges in the world, with $3.3 trillion in trading volume in 2025. Justin Sun serves as a global advisory board member at HTX. HTX did not immediately respond to a request for comment.

The A7 Network and Its Ruble-Backed Stablecoin

The new package of sanctions targets cryptocurrency exchanges and the A7 network, which the UK says is used by Russia to evade existing restrictions. The 18 new designations include Huobi Global SA, EXMO Exchange, and Eurasian Savings Bank, among others.

The A7 network is a Kremlin-backed system designed to bypass Western sanctions, finance military procurement, and process funds from the sale of oil to fund Russia's war economy. More than $90 billion may have passed through the network in 2025, according to the British assessment, a sum roughly equivalent to half of Russia's annual military spending.

A significant component of the package focuses on A7, a Russia-linked network increasingly understood to play a central role in sanctions circumvention, and the entity behind A7A5, the ruble-backed stablecoin. Through the end of July 2025, A7A5 had already processed over $51.17 billion in volume, with patterns of activity suggesting use by entities operating within the business work week.

A Regulatory First and Broader Pressure on Russia

Regulation 17A, historically deployed against designated banks in the wake of Russia's invasion of Ukraine, imposes far-reaching restrictions on correspondent banking relationships and payment processing. Tuesday marks the first time it has been applied to crypto exchanges.

Foreign Secretary Yvette Cooper said there would be "no safe havens for those enabling Russia's aggression." The move adds pressure at a difficult moment for the Russian economy. This month, Russia slashed its economic growth forecast for the year from 1.3% to just 0.4%, and halved its forecast for 2027.

Britain also sanctioned the Bitpapa peer-to-peer service, the Rapira payment system, and several legal entities in Kyrgyzstan, including Eurasian Savings Bank. Taken together, the exchange designations show the UK targeting both high-volume offshore venues with global user bases and smaller, regionally embedded platforms that handle ruble liquidity, cash-to-crypto conversion, and stablecoin issuance.

Sources:
UK Government: Official sanctions announcement, May 26 2026
Elliptic: UK designates cryptoasset exchanges in sweeping new sanctions package
Chainalysis: How A7A5 and Grinex Enable the Russian Shadow Crypto Economy