Cryptocurrency exchanges believed to be financing Russia’s war in Ukraine have been sanctioned by the U.K. government in the first attempt to prevent evasion via “dark networks.” The move indicates a new focus on digital sanctions evasion, and compliance teams should expect these rules to develop further, potentially in the EU and other jurisdictions.
U.K. Foreign Secretary Yvette Cooper said in a statement that the U.K. is “adapting and strengthening” its approach to target the evolving tactics Russia is using to evade restrictions. The new sanctions, announced on May 26, target both Russian cryptocurrency exchanges and the A7 network, which is being used to channel illicit finances via Kyrgyzstan’s financial systems to Russia.
