Kyrgyzstan's President Sadyr Japarov has formally appealed to the leaders of the United States and United Kingdom following the UK's imposition of sanctions on Kyrgyz crypto networks allegedly facilitating Russian sanctions evasion. The UK government targeted eight individuals and entities, including four Kyrgyz firms, on August 20, 2025, accusing them of funneling money to the Kremlin through cryptocurrency transactions.
The sanctions specifically impact the rouble-pegged stablecoin A7A5, which operates on Tron and Ethereum blockchains, and Kyrgyz-registered crypto exchanges Grinex and Meer. According to UK authorities, A7A5 moved $9.3 billion in just four months, primarily through closed networks designed to bypass international oversight. Analysts from TRM Labs identified Grinex as a potential successor to sanctioned Russian exchange Garantex, noting that Kyrgyz platforms exhibit identical on-chain patterns and reuse addresses, founders, and contact details.
Kyrgyzstan has emerged as a critical hub for Russian trade and crypto flows since the 2022 invasion of Ukraine, with bilateral trade reaching $3.5 billion in 2024 and Russian investment increasing nearly 25%. The country has rapidly developed its crypto sector, issuing over 100 VASP licenses and appointing Binance founder Changpeng Zhao as a digital assets advisor earlier this year.
UK Sanctions Minister Stephen Doughty stated: "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." TRM Labs' Head of Policy EMEA, Isabella Chase, supported the sanctions, noting they will complicate operations for these entities and attract attention from EU and US regulators.
The UK's actions reflect a broader strategy targeting both traditional financial institutions and crypto networks, with over $41 billion tracked in transfers tied to successor platforms since early 2025. This development increases pressure for global stablecoin regulation and reinforces the need for enhanced compliance measures around transactions involving Central Asian entities.
BTC
ETH
XRP
MATIC
SOL
BNB