UK Cracks Down on Russia-Linked Crypto Transactions with Nationwide Alert

The UK is cracking down on Russia-linked crypto transactions by targeting payment routes that facilitate sanctions evasion. The National Crime Agency issued an alert to banks, payment providers, and crypto firms, directing them to scrutinize counterparties, intermediary wallets, and cross-border infrastructure linked to Russian clients.

A7 network, which processed over $86 billion in its first year, is at the center of this crackdown. Authorities claim A7 has used financial institutions in third countries, SWIFT, and other international payment infrastructure to help Russians move funds around sanctions.

The alert goes beyond conventional name screening, highlighting intermediary wallets, transaction hashes, decentralized exchanges, mixers, over-the-counter and peer-to-peer routes, services without know-your-customer controls, chain-hopping, VPN use, and repeated infrastructure changes as potential red flags. This approach reflects how sanctioned crypto infrastructure has evolved under pressure.

The UK government is also proposing to double the maximum civil penalty for sanctions breaches involving measurable funds or economic resources. The proposed ceiling would rise to the greater of £2 million or 100% of the breach value, from £1 million or 50% today.