British government targets financial institutions and digital asset firms tied to sanction evasion schemes
The United Kingdom has imposed new sanctions on Kyrgyz banks and crypto platforms accused of facilitating Russian efforts to bypass Western restrictions. At the center of the move is a $9.3 billion ruble-backed stablecoin network, which UK officials claim was designed to undermine global sanctions.
A7A5 Stablecoin Under Scrutiny
According to the UK government, the sanctioned entities supported the A7A5 stablecoin, a token pegged to the Russian ruble that processed $9.3 billion worth of transactions in just four months. Officials described the project as a direct attempt to weaken sanctions on Moscow.
Among those blacklisted are Capital Bank of Central Asia and its director Kantemir Chalbayev, who allegedly facilitated funding for military goods. Additionally, Kyrgyz-based crypto exchanges Grinex and Meer were sanctioned for their alleged role in the network.
Sanctions Minister Stephen Doughty stated:
“If the Kremlin thinks they can hide their desperate attempts to soften the blow of our sanctions by laundering transactions through dodgy crypto networks – they are sorely mistaken.”
More Entities and Global Action
The UK sanctions list also includes Luxembourg-based Altair Holding, CJSC Tengricoin, Old Vector, and A7A5 director Leonid Shumakov, along with several individuals linked to the network.
The move follows similar actions by the U.S. Treasury’s OFAC, which recently re-sanctioned Garantex, a Russia-based exchange, and froze $27 million in USDT. Officials claim Grinex acted as a successor platform, crediting balances of Garantex users to maintain illicit activity.
Kyrgyz Government Responds
Kyrgyz President Sadyr Japarov dismissed the allegations, urging against politicizing economic ties. He stated that only the state-owned Keremet Bank now handles transactions in Russian rubles to prevent further sanctions. Keremet Bank itself was sanctioned by Washington earlier this year for facilitating Russian trade payments.
This latest crackdown highlights growing Western scrutiny of crypto networks believed to support sanction evasion. Analysts suggest that stablecoins pegged to national currencies may become a key focus for regulators, especially in geopolitical hotspots.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.