UK sanctions crypto exchanges over suspected Russia links

The UK on 8 October sanctioned three crypto exchanges and two payment platforms it suspects of helping Russia get around financial sanctions. The government says cutting off the services makes it harder for sanctioned entities to access and move funds, according to the UK government’s announcement.

The move was part of a wider package of 38 new designations targeting Russian oil companies, ships, military suppliers and financial channels. The government said three of the crypto and payment targets were linked to Kyrgyzstan. It also said two had processed transactions with the A7 network, a Russian financial network the UK says is used to evade sanctions.

Which crypto services appear in the sanctions notice?

The formal notice names TokenSpot CJSC, Joint Stock Company Planeta and Xeltox Enterprises Ltd. Planeta is also listed as Planeta 365. Xeltox is listed under the names Cryptomus, Heleket and Certa Payments.

The UK says it had reasonable grounds to suspect that the named firms supported Russia’s financial services sector. For Xeltox, the notice points to its ownership of Cryptomus and activity linked to, and continued via, Heleket. These are the government’s stated grounds for the designations, not findings from a court.

The UK said the A7 network claimed to have moved more than $90 billion last year, an amount it compared with roughly half of Russia’s annual military spending. That figure is the network’s claim, as reported by the government.

What do the sanctions prevent?

The designations include asset freezes. The notice also sets out restrictions on internet services and payments for the named entities. UK credit and financial institutions are barred from starting or continuing correspondent banking relationships with them, and from processing payments to, from or through them, according to the UK sanctions notice dated 8 October.

Internet services, including social media, internet access providers and app stores, must take reasonable steps to prevent people in the UK from accessing designated entities’ content, sites or apps. The practical effect is to restrict both financial access and online reach for the listed services in the UK.

The package adds to earlier UK action against crypto-linked networks accused of helping Russia bypass restrictions. The government’s stated aim is to make it harder for sanctioned people and companies to move or reach funds through these channels.

Sources

• UK government’s announcement — gov.uk
• UK sanctions notice dated 8 October — assets.publishing.service.gov.uk