UK Sanctions Target Russia’s Crypto Network to Curb Military Funding

The UK government has imposed new sanctions on entities linked to Russia's use of cryptocurrencies to circumvent Western restrictions. Authorities identified Kyrgyzstan's Capital Bank and its director, Kantemir Chalbayev, as central figures in a scheme facilitating military purchases for Moscow through offshore crypto networks.

Grinex, a Russian-founded exchange marketed as a successor to the blacklisted Garantex platform, was among the sanctioned entities. The UK also targeted Meer Exchange and firms associated with the ruble-backed token A7A5, which has become instrumental in Russia's sanctions evasion efforts.

"If the Kremlin thinks they can hide their desperate attempts to soften the blow of our sanctions by laundering transactions through dodgy crypto networks – they are sorely mistaken," said UK Sanctions Minister Stephen Doughty. These measures FORM part of a broader campaign to restrict Russia's financial options since its invasion of Ukraine.