The UK regulatory authorities have imposed sanctions on the digital currency platform HTX and 17 other organizations and individuals, accusing them of assisting Russia in circumventing international financial restrictions related to the conflict in Ukraine. This move marks the first time UK financial authorities have applied traditional banking sanction frameworks to cryptocurrency trading platforms.
According to representatives of the UK government, these sanctions aim to address Russia's "unauthorized financial networks," which are alleged to facilitate capital transfers, procurement of supplies, and financing of military operations.
The sanctioned targets also include organizations associated with the USDKG precious metals-backed stablecoin, as well as a joint-stock company based in Kyrgyzstan named "Virtual Asset Issuer." Several individuals have also been added to the sanctions list, including Sergey Mendeleev, Igor Golyn, Irina Akopyan, and Israeli citizen Liran Cohen.
HTX emphasized in a statement that compliance is its "top priority" and confirmed that the platform monitors and adheres to regulatory requirements in all operating regions.
UK Foreign Secretary Yvette Cooper stated, "If the Kremlin thinks it can evade our sanctions by hiding behind cryptocurrency networks and shadow financial systems, it is seriously mistaken."
A7 Payment System and Enhanced Regulatory Requirements
The A7 payment infrastructure is a primary target of this enforcement action, with UK authorities claiming that the system has processed revenues from Russian oil trades and supported the procurement of military equipment. Officials stated that this network facilitated over $90 billion in transfers over the past year.
The updated regulations prohibit UK financial institutions and digital asset service providers from maintaining banking relationships with designated entities and may face requirements to freeze financial resources and monitor blockchain activities related to these platforms.
Elliptic has warned that compliance verification may need to extend beyond direct trading counterparts to include digital wallets and trading platforms appearing in transaction sequences, involving multiple blockchain transfers.
HTX has previously attracted regulatory scrutiny. In 2025, the UK's Financial Conduct Authority filed a lawsuit against the platform, accusing it of unauthorized cryptocurrency advertising on platforms such as TikTok, X, Facebook, Instagram, and YouTube.
Since Russia launched military operations in Ukraine in 2022, the UK, EU, and other countries have imposed sanctions on it. In April 2026, the European Commission implemented cryptocurrency sanctions targeting stablecoins (such as A7A5) and related digital asset service providers.