The United Kingdom has intensified its efforts to impede Russia’s circumvention of financial sanctions by targeting three cryptocurrency platforms and several payment service providers. The Foreign Office announced a comprehensive list of 38 new measures, designed to dismantle Russia’s financial and supply networks.
Crypto and Payment Firms Face Sanctions
Among the sanctioned entities are the Canadian company Xeltox Enterprises, responsible for platforms such as Cryptomus, Heleket, and Certa Payments, as well as Kyrgyzstan-based TokenSpot. Additionally, UK authorities have listed VexPay, operated by Processing KG, along with Tsunami Payments and its executive Ulan Bukabaev.
The UK Foreign Office disclosed that two of the targeted firms were involved in transactions linked to the Kremlin-supported A7 network.
The sanctions identified two companies as partaking in transfers related to the A7 network, which operates the ruble-pegged A7A5 stablecoin. The British government believes this network is exploited to circumvent restrictions aimed at Russia’s financial sector. Stablecoins are digital assets pegged to particular assets or currencies to mitigate price volatility.
A7 Network Previously Under Scrutiny
The UK revealed that the A7 network facilitated transactions exceeding $90 billion in the past year. However, firms analyzing blockchain data have contested the actual transaction volume involving A7A5, resulting in divergent opinions on the network’s usage.
Previously, the UK enforced sanctions against platforms Grinex and Garantex, seen as associated with A7A5. Subsequent US actions also targeted the companies behind the token and their affiliated exchanges. With the new measures, the UK’s scrutiny has extended beyond platforms directly linked to the network.
Under the new measures, the assets of the listed individuals and entities in the UK will be frozen, preventing UK financial institutions from processing payments to or from these companies.
Part of a Broader Sanctions Package
The latest sanctions extend beyond the realm of crypto and payment infrastructure. Included in the package are Russian oil producers Zaribezhneft and INK Capita, 12 shadow fleet tankers, and suppliers of machinery, electronics, and other goods. The UK claims these products are utilized in Russia’s missile and drone production.
In a broader context, the European Union initiated its 21st sanctions package against Russia in July, targeting 14 crypto firms and four entities connected to the A7 cross-border network. The latest UK decision underscores the persistent pressure Western nations are applying on digital financial networks linked to Russia.
