Kyrgyz crypto networks hit by UK sanctions over ties to Russia — Daryo News

Kyrgyz crypto networks hit by UK sanctions over ties to Russia

The United Kingdom has imposed sanctions on several Kyrgyz cryptocurrency networks, targeting individuals and companies allegedly aiding Russia in circumventing international sanctions, the British government announced.

Source: DPA

The measures aim to increase pressure on Moscow amid the ongoing war in Ukraine. According to the UK, Russia has been using Kyrgyzstan’s financial sector to move funds through opaque networks, including cryptocurrencies.

Among the targets is the A7A5 cryptocurrency, launched in Kyrgyzstan but pegged to the Russian ruble. In just four months, A7A5 facilitated transactions worth $9.3bn, according to the UK government.

“If the Kremlin thinks they can hide their desperate attempts to soften the blow of our sanctions by laundering transactions through dodgy crypto networks – they are sorely mistaken,” Stephen Doughty, the UK’s deputy foreign minister, said.

The sanctions specifically target three individuals and five legal entities, including:

• Grinex, a Kyrgyz crypto exchange;
• Tengricoin, operator of the Meer Crypto Exchange;
• Old Vector, which launched the A7A5 cryptocurrency for cross-border payments;
• Altair Holding, a Luxembourg-registered company supporting Russia and controlling organizations in the Russian financial sector;
• Capital Bank of Central Asia, along with its director Kantemir Chalbayev;
• Zhanyshbek Uulu Nazarbek, head of the Kyrgyz Trading Company.

Following the UK sanctions, Russia retaliated by imposing measures against a number of British media outlets, NGOs, and consulting firms.

Earlier, the U.S. imposed sanctions on Grinex and Old Vector for helping evade sanctions and engaging in illegal cryptocurrency activities.

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