On May 26, the UK government announced a comprehensive sanctions package targeting Russia’s shadow financial networks, listing 18 entities and individuals on the blacklist, with its main target being the HTX operator Huobi Global S.A. The UK alleges that HTX provides financial services to the A7 settlement network and the Russian exchange Garantex, involving approximately $1.5 billion in funds and helping Russia evade Western sanctions.
UK’s “Regulation 17A” Applies to Crypto Exchanges for the First Time With Confirmed Legal Authority
“Regulation 17A” had previously applied only to traditional banking institutions. This time, the UK government confirmed that it would be applied directly to cryptocurrency exchanges, marking the first instance of UK crypto enforcement using this regulation. The regulation authorizes authorities to impose asset freezes and payment processing prohibitions on targeted entities. This means that any banks, payment processors, and financial institutions doing business with the UK must immediately stop interacting with HTX or face civil and criminal penalties. Blockchain analytics firm Elliptic confirmed that the new regulation’s scope covers transaction paths across multiple jumping nodes on the blockchain; as long as the sanctioned exchange appears in the funds transfer chain, the related transactions may be considered illegal.
Confirmed Investigation Data on the A7 Network and the A7A5 Stablecoin
The sanctions’ core target, A7, is accused by the UK government of being a key financial lifeline used by the Kremlin to sustain its war machine. Official UK data confirms that the A7 network processed an estimated $90 billion in money laundering over the past year—about half of Russia’s annual military spending. The A7 network primarily relies on operating the Russia rouble-pegged stablecoin A7A5. Since its launch in January 2025, A7A5 has been used to process more than $100 billion in transactions. The UK government confirmed that after being sanctioned by the U.S. Treasury Department, Garantex reorganized into Grinex, headquartered in Kyrgyzstan, and continues to operate, becoming a major hub for conversions between A7A5 and Tether (USDT).
HTX’s Confirmed Market Scale and the UK FCA’s Existing Legal Procedures
Based on publicly available data, in 2025 HTX’s total trading volume exceeded $3 trillion. Spot trading volume surpassed $1.9 trillion, while derivatives trading volume reached $1.4 trillion. The UK government confirmed that Justin Sun, founder of Tron and a member of HTX’s global advisory committee, was not included among the personal names on this list of 18 sanctioned entities; the UK authorities narrowed the scope of sanctions to corporate entities. This sanctions action is not the first by a UK regulator against HTX: the UK Financial Conduct Authority (FCA) launched formal legal proceedings in February 2026 over alleged illegal financial promotion by HTX on TikTok, X, Facebook, Instagram, and YouTube.
FAQ
What is the specific legal basis for the UK’s sanctions against HTX?
The UK imposed sanctions on HTX under “Regulation 17A” (Regulation 17A). This is the first time this regulation has been applied to a cryptocurrency exchange. The regulation grants authorities the power to enforce asset freezes and payment processing prohibitions on targeted entities. UK Foreign Secretary Yvette Cooper confirmed that all assets of HTX in the UK jurisdiction have been immediately frozen.
How is the $90 billion money-laundering scale of the A7 network confirmed, and what is its specific connection to HTX?
According to the UK’s official sanctions announcement, the estimated money-laundering scale processed by the A7 network over the past year reached $90 billion, relying on the A7A5 stablecoin (pegged to the Russian rouble). A7A5 has processed more than $100 billion in transactions. The UK government confirmed that approximately $1.5 billion flowed from HTX to the A7 network and Garantex (reorganized into Grinex), and cited this as the specific basis for sanctioning HTX.
Why wasn’t Justin Sun listed in the personal sanctions list, and what does that mean?
The UK government confirmed that Justin Sun, as a member of HTX’s global advisory committee, was not included in the personal names among the 18 sanctioned entities. The UK authorities’ confirmation statement shows that the scope of sanctions was limited to corporate entities, and the UK government did not explain in the announcement any specific legal or policy reasons for not listing individuals.
