Britain sanctioned Bitpapa, Exmo, Rapira, and other crypto firms accused of supporting Russia-linked financial activity. UK authorities applied Regulation 17A to crypto exchanges for the firs
The United Kingdom sanctioned several crypto exchanges and digital asset firms on May 26 under its Russia sanctions regime, the first use of the rules against crypto platforms. According to blockchain analytics firm Elliptic, the measures target companies accused of supporting Russia-linked financial networks, including A7 Limited Liability Company, as Britain expands enforcement against sanctions-evasion operations.
The UK government sanctioned Bitpapa IC FZC LLC, Exmo Exchange Limited, Aifory LLC, and Rapira Group LLC. Authorities accused the firms of providing financial services, funds, or economic resources tied to Russia-linked entities.
According to the Foreign, Commonwealth and Development Office, the sanctions fall under the Russia (Sanctions) (EU Exit) Regulations 2019. The package also targeted banks, corporate entities, and individuals connected to Russia’s financial sector.
Notably, the designations included Huobi Global S.A., Nueva Cryptologia SAS de CV, and Arvix LLC. The government also named Igor Olegovich Gorin, Irina Rafaelyevna Akopyan, Sergey Mendeleev, and Liran Cohen.
Meanwhile, the sanctions also extended to Garantex Europe OU and entities linked to the A7 network.
According to Elliptic, Britain applied Regulation 17A against crypto exchanges for the first time. Previously, authorities mainly used the rule against sanctioned banks following Russia’s invasion of Ukraine.
The regulation blocks UK institutions from maintaining correspondent relationships with designated entities. It also prohibits firms from processing payments linked to sanctioned exchanges anywhere in the transaction chain.
As a result, UK virtual asset service providers must trace transactions beyond direct counterparties. Firms now need to identify indirect exposure connected to sanctioned exchanges and linked wallets.
Additionally, UK institutions must freeze assets owned or controlled by designated entities under existing asset-freeze requirements.
British authorities also targeted firms tied to cash-to-crypto operations, stablecoin issuance, and offshore trading infrastructure. According to the information provided, officials focused heavily on the A7 sanctions-evasion network.
The sanctions package included OJSC Virtual Asset Issuer, linked to the USDKG stablecoin, alongside Alistera Limited and Diamond Estate LLC.
Elliptic stated that regulators increasingly view offshore crypto exchanges as critical infrastructure for sanctions evasion and illicit financial activity.
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