UK intervenes: 5 crypto companies fined for ties with Russia

The UK has imposed sanctions on five crypto companies that the UK authorities believe are involved in financial transactions with Russia.

The measures focus on a network that allows Russia to continue to make international payments despite Western sanctions. Research into the money flows shows how big the role of crypto companies has become possible.

The UK government has placed Cryptomus, Heleket, TokenSpot, Grinex and More on a sanctions list. The companies are associated with financial services to Russia.

Central to this is the Russian payment network A7. This network is set up to enable international payments outside the traditional financial channels. In this way, it can help Russia limit the consequences of Western sanctions.

According to the available information, A7 has now processed more than $90 billion in payments. This underlines the size of the network and the role that alternative payment methods can play in international cash flows.

The British measures must prevent the companies concerned from still being able to use financial services and funds that fall under the British sanctions rules.

Blockchain analytics firm Chainalysis examined the cash flows associated with the crypto companies involved. This included a deposit address at crypto exchange HTX.

According to the investigation, Cryptomus, Heleket, TokenSpot, Grinex and Meer collectively received more than $308 million through this address. The transactions show how crypto platforms can be used to move large amounts between different parties.

HTX, formerly known as Huobi Global, thus plays a striking role in the research. Huobi Global was also hit by sanctions in May. However, HTX disputes that these measures have consequences for its activities.

That distinction is important. Money flows via a crypto exchange do not automatically mean that the exchange itself is consciously involved in evading sanctions. However, the findings show how difficult it can be to fully control international crypto transactions.

In addition to the crypto companies involved, the Russian stablecoin A7A5 is also receiving attention. This digital currency is linked to the Russian ruble and is part of the wider payment network around A7.

A stablecoin is a cryptocurrency that is designed to maintain a relatively stable value, for example by linking it to a national currency.

According to blockchain security firm CertiK, A7A5 had reached a combined transaction volume of about $110 billion by June. That amount represents the total value of processed transactions and does not mean that there are the same amount of coins in circulation.

The development shows why Western governments are paying more and more attention to crypto companies and digital currencies that have ties to Russia. While traditional banks are subject to strict sanctions rules, crypto networks can offer new routes for international payments.

The British sanctions therefore focus not only on individual companies, but also on the financial infrastructure with which Russia tries to maintain access to international financial flows.