UK Implements First Banking-Level Sanctions on Crypto Exchange: HTX Added to Russia-Related Sanctions List

On May 26, 2026, the UK Foreign, Commonwealth & Development Office (FCDO) announced the addition of 18 entities and individuals to its Russia sanctions list. Among those listed was Panama-registered Huobi Global S.A.—the operating entity of the cryptocurrency exchange HTX.

According to Reuters and CoinDesk, this marks the first time the UK has applied bank-grade sanctioning tools (Regulation 17A) to a cryptocurrency exchange.

Sanctions Background: The A7 Network and $90 Billion in Fund Flows

UK authorities accuse HTX of providing financial services to two entities with strategic ties to Russia: the Kremlin-backed A7 payment network (which issues the ruble-pegged stablecoin A7A5) and Garantex, a Moscow-based crypto exchange previously sanctioned by the United States.

According to disclosures by the UK Foreign Office, the A7 network processed over $90 billion in funds last year, equivalent to roughly half of Russia's annual military expenditure. The UK believes the network funneled approximately $1.5 billion back into Russia via a Kyrgyz bank and a major crypto exchange.

Blockchain analytics firm Elliptic noted in its blog that HTX, with an estimated trading volume of $3.3 trillion in 2025, is one of the world's largest crypto exchanges. Another on-chain data firm, Global Ledger, estimated in a report that between 2021 and May 2026, HTX processed approximately $21.06 billion in high-risk fund flows. Of this, $7.64 billion was linked to Russian entities and darknet markets (such as Hydra).

Sanctions Measures: Asset Freezing and Transaction Tracking

The sanctions are effective immediately and include the following specific measures:

1. Severing Correspondent Relations: UK financial institutions are prohibited from maintaining correspondent banking relationships with the sanctioned entities.

2. Freezing Funds: UK-registered virtual asset service providers (VASPs) must freeze relevant funds.

3. Expanded Tracking: Compliance checks must trace multi-hop transactions on the blockchain, rather than strictly focusing on direct counterparties.

Elliptic noted that this model could serve as a reference framework for other regulators, marking the formal extension of traditional financial sanction rules into the digital asset space.

Industry Ripple Effect: Major Exchanges Tighten Scrutiny on HTX Transfers

According to a follow-up report by CoinDesk on May 27, major exchanges including Binance, OKX, Bybit, and Bitget swiftly issued user notices following the sanctions announcement:

• Binance: Transactions involving HTX may require additional compliance reviews.

• OKX: Warned users who previously engaged in arbitrage trading between HTX and OKX that continuing to transfer funds could trigger account reviews.

• Bybit: Advised users to avoid using HTX-related addresses for deposits and withdrawals, noting that such actions will face extra Anti-Money Laundering (AML) checks.

• Bitget: Updated its sanctions screening system; transactions involving sanctioned entities may be rejected, restricted, or lead to account termination.

Analysts point out that over $100 million in USDT held by HTX also faces the risk of being frozen by the stablecoin's issuer.

HTX Response: The Sanctioned Target is an Independent Legal Entity

HTX released a statement on the social platform X, denying the allegations that it assisted Russia's financial infrastructure. The company emphasized: "Huobi Global S.A., which is included in the sanctions list, is a legally distinct entity from the online operating HTX exchange. This sanction will not and should not have any impact on the HTX online exchange." HTX also stated that it had rejected the listing application for the A7A5 stablecoin and would cooperate with UK authorities to understand the basis for the sanctions.

Justin Sun personally promised "full compliance" in a report via Yahoo Finance. Furthermore, BeInCrypto reported that HTX assured all user funds remain safe and its global operations are unaffected.

Broader Context

It is worth noting that the UK Financial Conduct Authority (FCA) previously filed a lawsuit against HTX in October 2025, accusing it of promoting crypto asset services to UK consumers without authorization. The recent sanctions further intensify the compliance pressure on HTX in the UK market.

The sanctions package also targets other entities, including Rapira Group LLC, Aifory LLC, Arvix LLC, Bitpapa IC FZC LLC, and the issuer of the Kyrgyzstan-linked gold-pegged stablecoin USDKG. Sanctioned individuals include Sergey Mendeleev, Igor Gorin, Irina Akopyan, and Israeli national Liran Cohen.

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