The UK has launched a new wave of sanctions targeting cryptocurrency exchanges and financial networks that have helped Russia circumvent Western restrictions imposed over its actions in Ukraine. This move focuses on disrupting a complex scheme in which Russian entities have exploited Kyrgyzstan’s financial sector and crypto platforms to evade existing sanctions.

Among those sanctioned are the Kyrgyzstan-based Capital Bank and its director, Kantemir Chalbayev, accused of funneling payments for Russian military goods. Two Kyrgyz crypto exchanges, Grinex and Meer, have also been placed on the blacklist. These platforms are believed to be central to the operations of A7A5, a ruble-backed stablecoin created specifically to bypass restrictions—A7A5 reportedly moved $9.3 billion in transactions over just four months.

In addition to these main targets, several other entities and individuals tied to this illicit network have also been sanctioned. The UK government has stated that these measures are designed to sustain pressure on Russia and clamp down on financial channels supporting its military activities. This action aligns with similar sanctions imposed by the United States and signals strengthened international cooperation aimed at closing loopholes that allow sanctioned parties to access global markets.

Officials emphasize that these sanctions reflect a wider effort to maintain the effectiveness of the Western sanctions regime. As Russia seeks to weaken the impact of these measures by turning to new technologies and alternative financial networks, the UK and its allies remain committed to tracking and interrupting illicit flows that support Russia’s war efforts.

The continued crackdown sends a clear message: governments are increasingly vigilant about the potential misuse of cryptocurrency and are prepared to take coordinated action to protect the integrity of sanctions and uphold international security.