The United Kingdom sanctioned three cryptocurrency exchanges and two payment platforms on October 8 over suspected involvement in Russian sanctions evasion, according to an official announcement. The measures form part of a package of 38 new designations that also targets oil companies, tankers and suppliers connected to Russia's military supply chains. British authorities linked two of the targeted firms to transactions involving the Russia-backed A7 financial network.

Crypto Firms and Payment Operators Named

The list includes Xeltox Enterprises, a Canadian-registered company behind Cryptomus, Heleket and Certa Payments, along with Kyrgyzstan-based TokenSpot. It also covers Processing KG, operator of the VexPay payment service, and Tsunami Payments. Ulan Bukabaev, Processing KG's director, was designated in a personal capacity. The package spans firms incorporated in Canada and operating in Kyrgyzstan, underscoring that UK designation lists are not limited to UK-registered entities.

British authorities suspect two of the targeted businesses of handling payments tied to A7, a Russia-backed financial network that the United States sanctioned earlier this month over alleged illegal financing. Officials provided no transaction totals for any individual company on the list.

A7 Stablecoin Network Under Pressure

The A7 network operates a ruble-backed digital token known as A7A5, which the UK says is used to move funds around restrictions imposed on Russian banks. That distinguishes it from the largest stablecoins in circulation, which are pegged to the US dollar. According to British officials, A7 has claimed to have processed more than $90 billion during 2025. That figure originates from A7 itself and remains unverified. Blockchain researchers have questioned whether reported A7A5 transfers reflect genuine payments between independent users, and authorities have not said that every newly sanctioned exchange handled the token.

How UK Sanctions Restrict Payments

UK designations freeze the assets of listed firms within British jurisdiction and bar financial institutions from processing prohibited payments involving them. Breach of UK financial sanctions can carry civil or criminal penalties, and banks and payment companies with UK exposure screen counterparties against the published sanctions list as part of compliance. The action follows earlier British sanctions against crypto services suspected of handling Russian funds, including Grinex and Garantex. Other governments have restricted related platforms while investigating suspected sanctions avoidance. Separately, Kyrgyzstan's USDKG stablecoin shut down after the UK sanctioned its issuer.

Oil, Shadow Fleet and Military Supply Chains

Beyond the crypto sector, the UK sanctioned Russian oil producers Zarubezhneft and INK Capital and added 12 tankers linked to Russia's shadow fleet. Officials say these vessels help transport oil under arrangements designed to avoid restrictions. The announcement also names 17 people and businesses tied to supplies for Russian weapons production, including providers of machine tools, electronics and other goods used in missile and drone manufacturing.

Japan separately expanded its sanctions on October 2, adding restrictions on the Garantex exchange under its Foreign Exchange and Foreign Trade Act and related rules.

The UK government says the designations are intended to restrict the funds and equipment reaching Russia during its war in Ukraine. All designated individuals and entities now face the applicable UK restrictions. The complete designation list is published on the government's website, where additions and removals are recorded. With the US, Japan and the UK all acting against Russia-linked crypto services this month, future designations in other jurisdictions are one development to follow through official announcements.

Source: Blockonomi