The UK has joined the US in taking action against Russia’s attempts to circumvent sanctions using cryptocurrencies. Authorities have identified Kyrgyzstan-based financial institutions and opaque crypto networks as key tools for transferring funds to support military activities despite the economic embargoes imposed on Moscow. Specifically, Capital Bank in Kyrgyzstan and its director Kantemir Chalbayev, are being targeted for their role in facilitating access to global markets. The sanctions also target Grinex, a Russian-founded cryptocurrency exchange that was described by regulators as a direct successor to the sanctioned platform Garantex, which was previously blacklisted by both the US and EU. Further scrutiny is focused on A7A5, a ruble-backed stablecoin used extensively by Russia to circumvent sanctions, processed over $9.3 billion in transactions within four months according to Chainalysis. Its trading primarily occurs during weekdays within a limited ecosystem of Russian-linked financial services. The exchanges Grinex and Garantex directly link this token’s activities. UK officials emphasize that their crackdown aims to disrupt Russia’s efforts to fund military operations despite sanctions, and the move mirrors similar actions by the US Treasury’s Office of Foreign Assets Control (OFAC). This action highlights a critical front in the broader sanctions campaign against Russia: the use of cryptocurrencies for illicit financial activities.