UK Sanctions Kyrgyz Financial and Crypto Network Over Ruble‑Linked Stablecoin
The United Kingdom has imposed new sanctions on a cluster of Kyrgyz financial institutions, cryptocurrency exchanges and associated individuals that British officials say were used to help Russia evade Western restrictions. UK authorities singled out a ruble‑pegged token known as A7A5 and said the token and its supporting infrastructure moved unusually large volumes in a short period, prompting the action.
Among the entities blacklisted are the OJSC Capital Bank of Central Asia (often called Capital Bank) and its director, Kantemir Chalbayev, as well as Kyrgyz crypto platforms Grinex and Meer. The sanctions package also includes firms and individuals tied to the infrastructure behind the A7A5 stablecoin, plus a Luxembourg‑based holding company and other commercial operators named by the UK.
British authorities say A7A5 was designed to mirror the Russian ruble on public blockchains and reported that the token processed roughly $9.3 billion of transactions over about four months — a rapid turnover that regulators say was consistent with an effort to route large volumes of value outside established banking channels. Independent chain‑analysis groups and press outlets have traced heavy flows through A7A5 and linked the token to exchanges and wallet clusters associated with the now‑sanctioned ecosystem.
The move follows concerted action by U.S. authorities: the U.S. Treasury’s Office of Foreign Assets Control has taken several steps this year against Garantex and related actors, and Washington recently redesignated Garantex and sanctioned successor networks such as Grinex, citing their roles in processing illicit or sanctioned flows. The UK measures build on those U.S. actions and aim to close avenues alleged to be used to shield sanctioned activity.
Kyrgyzstan’s president, Sadyr Japarov, publicly rejected the UK’s characterization, warning against politicizing the economy and denying that the country’s banks were helping Russia skirt sanctions. He indicated the government would concentrate ruble operations through the state‑owned Keremet Bank to limit further exposure. The UK government framed the sanctions as part of a wider effort to prevent illicit finance from undermining international restrictions on the Kremlin.
UK Sanctions Minister Stephen Doughty said the measures were intended to stop attempts to launder transactions through “dodgy crypto networks” and to maintain pressure on Russian leaders. Officials and crypto‑forensics firms say the coordinated design, rapid launch of new exchanges and token‑based rails illustrate an evolving sanctions‑evasion playbook that Western authorities are working to disrupt.
