UK Sanctions Russian Crypto Exchanges for First Time

The UK government has taken the unprecedented step of sanctioning four cryptocurrency exchanges for helping move money on behalf of a Kremlin-backed payment network. Announced on 26 May 2026, the move marks the first time British authorities have used sanctions powers specifically against crypto platforms.

The four exchanges — Bitpapa IC FZC LLC, Exmo Exchange Limited, Aifory LLC, and Rapira Group LLC — were found to be providing financial services to A7 Limited Liability Company, a network linked to the Russian government. The UK’s Foreign, Commonwealth and Development Office confirmed the action, stating that A7 moved more than $90 billion in the past year alone.

For anyone holding or trading crypto in the UK, this is a significant moment. It confirms that British regulators now view digital assets as part of the mainstream financial system — and a potential tool for sanctions evasion.

Which Exchanges Were Sanctioned?

The four exchanges named in the UK sanctions package are not household names in Britain. Bitpapa, Exmo, Aifory, and Rapira are all platforms that operated largely outside Western regulatory scrutiny. However, their alleged connection to the A7 payment network brought them squarely into the sights of British authorities.

Exmo Exchange is the most familiar name on the list. It previously operated in the UK and Europe and claimed hundreds of thousands of users. In 2021 it suffered a major hack. Its reappearance in a sanctions list — years after its European operations wound down — raises questions about how thoroughly offshore crypto platforms can be monitored.

The other three exchanges are smaller and less well-known, but their alleged role in processing Kremlin-linked funds shows that even obscure platforms can carry significant systemic risk.

What Is the A7 Network?

The A7 network is a payment infrastructure allegedly maintained with Kremlin backing. According to the UK government, it was designed to help Russian entities move money internationally in ways that bypass traditional banking channels and Western sanctions.

The scale of its operations is staggering. Moving $90 billion in a single year puts A7 on par with mid-sized national payment systems. Cryptocurrency’s pseudonymous nature and cross-border reach made it attractive for this kind of activity, allowing funds to be transferred quickly without the compliance checks that banks must apply.

The UK Foreign, Commonwealth and Development Office said that the four exchanges provided “financial services, funds, or economic resources” to A7 — language that echoes traditional sanctions against banks and money service businesses.

Why Crypto Is Now in the Sanctions Crosshairs

Western governments have spent years debating how much crypto actually helps sanctions evaders. The consensus has shifted significantly since Russia’s full-scale invasion of Ukraine in 2022. Evidence has mounted that crypto — while not the dominant tool of evasion — is used selectively to move money around Western restrictions.