Britain Targets Kyrgyz Crypto Networks in New Sanctions Crackdown

Highlights:

• Britain targets Kyrgyz crypto networks tied to Russia’s military supply chain.
• The A7A5 stablecoin transferred over $9.3 billion in four months to evade sanctions.
• The sanctions issued by the UK come after similar steps by the US government.

The United Kingdom has expanded the list of sanctions, targeting financial systems that allow Russia to overcome existing imposed restrictions. On Wednesday, the UK government stated that it is targeting Kyrgyz crypto networks and financial institutions as part of a massive sanctions evasion scheme. The very essence of the move is the stablecoin A7A5, a ruble-based token that works through unclear systems in Kyrgyzstan.

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SANCTIONED: financial and cryptocurrency networks funnelling money to the Kremlin ⬇️https://t.co/y8wWmogtHI

— Foreign, Commonwealth & Development Office (@FCDOGovUK) August 20, 2025

A7A5 Stablecoin Moves Billions Through Kyrgyz Networks

British authorities disclosed that A7A5 handled transactions worth $9.3 million in the four-month period. This token was introduced by the Kyrgyz company Old Vector and is pegged to the Russian ruble. Furthermore, it was allegedly backed by deposits in Promsvyazbank, a sanctioned Russian bank. The operations were concentrated mostly on weekdays and through the Grinex crypto exchange.

Garantex, a Russian-established exchange, was banned by the US and EU but was replaced by Grinex. Investigations found on-chain links between Garantex and the A7A5 ecosystem. The digital coin was a secret means of payment in the military supply system in Moscow.

Grinex and Meer, two Kyrgyzstani-based companies, are now subject to UK sanctions because of their role in enabling A7A5 trades. These platforms have proved to be focal points of Russia in finding a way around the financial sanctions. Grinex was also reported to handle internal payments among Russia-related companies.

Britain targeting Kyrgyz crypto networks follows last week’s move whereby Garantex and Grinex were sanctioned on a new occasion by the U.S. Treasury Office of Foreign Assets Control (OFAC). The companies were accused by OFAC of facilitating more than 100 million illegal crypto transactions with Russian networks.

US SANCTIONS RUSSIAN CRYPTO EXCHANGES GARANTEX AND GRINEX

US Treasury redesignates Russian crypto exchange Garantex and its successor Grinex to the sanctions list.

Previous attempts to shut Garantex failed, with the exchange activating contingency plans to keep operating.

TRM…

— CryptoEdge (@EdGeraldX) August 15, 2025

UK Names Banks, Crypto Firms, and Individuals

The UK targeted eight individuals and organizations that have been supporting the financial networks of Russia. Capital Bank, a Kyrgyz bank, and its director, Kantemir Chalbayev, were also listed as being involved in carrying out military-related business dealings on behalf of Moscow. This bank assisted Russians in purchasing military products using a stablecoin network, according to the British authorities.

Other companies sanctioned include GRINEX LLC, CJSC Tengricoin, Old Vector LLC, and Altair Holding SA, based in Luxembourg. The UK also identified Leonid Shumakov, who is the director of A7A5, as one of the key figures behind the design and operation of the network.

Sanctions Minister Stephen Doughty said:

“If the Kremlin thinks they can circumvent our sanctions strategy by laundering payments through dodgy cryptocurrency networks, they are sorely mistaken.”

Kyrgyzstan Pushes Back Against Allegations

President Sadyr Japarov of Kyrgyzstan has, however, pleaded to the leaders of the UK and the U.S. in the midst of the sanctions. According to a recent Reuters report, he stated that the allegations politicize economic systems and denied the local banks any malpractice. To address international concerns, he said only Keremet Bank, the state-owned bank, would deal with ruble transactions moving forward. Japarov further stated that Kyrgyzstan would continue honoring its international commitments. He also made it clear that the country would not compromise its trade and economic development.

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