UK bans Huobi, stablecoin issuer for Russia crypto aid
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- UK sanctions 18 entities and individuals, including Huobi Global S.A. and a Kyrgyzstan‑linked stablecoin issuer, for helping Russia evade sanctions and finance its war in Ukraine.
- Huobi (operator of HTX) is suspected, per blockchain analytics firm Elliptic, of providing services to Russia’s A7 payments network and to the previously sanctioned Russian exchange Garantex (now Grinex).
- A7 payments network is identified by UK officials as moving over $90 billion to support Russia’s military operations.
- Elliptic warned that the new UK rules could force firms to trace blockchain transactions across multiple hops, extending compliance checks beyond direct counterparties.
- Virtual Asset Issuer, a Kyrgyzstan‑linked company behind the USDKG gold‑backed stablecoin, was sanctioned alongside individuals for sanctions‑evasion activity.
Why it matters: UK regulators tighten enforcement, forcing crypto firms to freeze assets linked to Russia's $90 billion A7 network, while Russian war financing loses a key illicit channel, increasing compliance costs for exchanges.
