How Russia is using Kyrgyzstan’s crypto market to bypass sanctions
Kyrgyzstan's cryptocurrency market has become a focal point for sanctions evasion, with Russian networks leveraging local exchanges to reroute funds. TRM Labs reports that Kyrgyz-registered platforms Grinex and Meer emerged shortly after U.S. authorities disrupted Russia's Garantex in March 2025, exhibiting similar wallet infrastructure patterns.
The Central Asian nation's crypto industry has surged from negligible activity to billions in transactions since passing its 2022 VIRTUAL assets law. Licensed platforms processed $4.2 billion in the first seven months of 2024 alone, but weak oversight creates vulnerabilities. The ruble-backed stablecoin A7A5 and shell virtual asset service providers have become key tools in this sanctions avoidance network.
