The United Kingdom announced a major sanctions package targeting Russia-linked cryptoasset exchanges, banks, and individuals. For the first time, Regulation 17A of the Russia (Sanctions) (EU Exit) Regulations 2019 has been applied to cryptoasset exchanges, imposing correspondent banking-style restrictions. This prohibits UK VASPs from processing payments where a designated exchange appears anywhere in the transaction chain, even if the direct counterparties are not sanctioned. The package designates HTX, one of the world's largest crypto exchanges with $3.3 trillion in 2025 trading volume, along with other platforms like Rapira Group, ABCEX, Aifory Pro, Arvix LLC, Bitpapa, and USDKG stablecoin issuer. The A7 network, a key sanctions evasion infrastructure, is also targeted. UK firms must freeze funds linked to designated entities and implement on-chain tracing to identify indirect exposure. This move sets a precedent for global cryptoasset sanctions enforcement.

Key facts

• UK applies Regulation 17A to crypto exchanges for the first time.
• HTX designated; $3.3 trillion trading volume in 2025.
• A7 network targeted for sanctions evasion.
• UK VASPs must freeze funds and trace on-chain exposure.