UK Sanctions Crypto Exchanges for First Time Under Russia Regime

The UK government sanctioned several crypto firms on May 26 under its Russia sanctions regime, marking the first time the relevant legislation has been used against cryptocurrency exchanges, according to blockchain analytics firm Elliptic.

The sanctioned entities include Bitpapa IC FZC LLC, Exmo Exchange Limited, Aifory LLC, and Rapira Group LLC. The UK’s Foreign, Commonwealth and Development Office accused them of providing financial services, funds, or economic resources to A7 Limited Liability Company.

The Full List of Designations

The sanctions, issued under the UK’s Russia (Sanctions) (EU Exit) Regulations 2019, cover three categories of entities and individuals.

Those involved in supporting the Russian financial sector include Exmo Exchange Limited, Rapira Group LLC, Aifory LLC, Bitpapa IC FZC LLC, Arvix LLC, Alistera Limited, Sooty Ltd, Open Joint Stock Company Eurasian Savings Bank, Limited Liability Company Diamond Estate, and Trace Road LLC. Three individuals were also named: Igor Olegovich Gorin, Irina Rafaelyevna Akopyan, and Sergey Mendeleev.

Those accused of making funds, economic resources, goods, or technology available to individuals in the Russian financial sector include Nueva Cryptologia, Huobi Global S.A., and individual Liran Cohen.

Entities involved in carrying on business of economic significance to the Russian government include Open Joint Stock Company State Brokerage Company and Open Joint Stock Company Virtual Asset Issuer.

Why This Is Significant

Elliptic confirmed that this marks the first time the UK has applied its Russia sanctions regime specifically against crypto exchanges. The move signals a significant escalation in how Western governments are using financial sanctions tools against digital asset platforms suspected of helping Russia evade restrictions imposed following the invasion of Ukraine.

The action is part of a broader UK crackdown targeting Russia sanctions-evasion networks, which also included Garantex Europe OU alongside traditional banks and related companies.

What’s Next

Western regulators have been tightening enforcement around crypto platforms with links to sanctioned jurisdictions. The US Treasury previously sanctioned Garantex, one of Russia’s largest crypto exchanges, and froze hundreds of millions in Iran-linked digital assets in recent months.

The UK’s first use of crypto-specific Russia sanctions designations suggests coordinated Western pressure on digital asset platforms operating in or adjacent to sanctioned networks is entering a new phase.