UK Intensifies Crackdown on Cryptocurrency Networks Linked to Russia

The UK has ramped up its crackdown on payment networks associated with Russia. On August 31, the National Crime Agency issued its first national alert aimed at the industry, advising banks, payment service providers, and cryptocurrency companies to scrutinize counterparties, intermediary wallets, and cross-border infrastructure related to transactions with Russia.

At the same time, the government has proposed a plan to increase the maximum civil penalties applicable by the Office of Financial Sanctions Implementation (OFSI) for violations involving measurable funds or economic resources. The proposal raises the cap to the higher of £2 million or 100% of the amount of the violation, up from the current £1 million or 50%.

According to UK authorities, A7 operates a cross-border settlement network that has used financial institutions in third countries, the SWIFT system, and other international payment structures to help Russian clients transfer funds while evading sanctions. The network claims to have processed over US$86 billion in its first year, a figure described as self-reported.

The alert also expands compliance teams' focus beyond traditional name checks. Authorities noted that intermediary wallets, transaction hashes, decentralized exchanges, mixers, over-the-counter and peer-to-peer routes, services lacking know-your-customer controls, cross-chain jumps, the use of VPNs, and frequent changes in infrastructure are all signals that require stricter scrutiny.

The materials also state that UK authorities previously assessed that cryptocurrency liquidity had shifted from Garantex to Grinex, registered in Kyrgyzstan, via A7A5 (a token backed by the ruble) after enforcement actions were taken against Garantex. As of May 2025, Grinex recorded a total inflow and outflow of USDT exceeding US$1.2 billion.

For UK businesses, this means that even if an exchange, wallet, or payment service changes its name, jurisdiction, or track, the exposure to sanction risks may persist. However, adjustments to fines still depend on legislation, and no effective date has been set.