UK sanctions Kyrgyz banks and crypto exchanges linked to Russia

The United Kingdom has expanded sanctions against Kyrgyzstan’s financial institutions and crypto firms allegedly helping Russia bypass restrictions. The measures target banks, exchanges, and infrastructure linked to the A7A5 stablecoin, which processed $9.3 billion in just four months.

Banks and crypto exchanges targeted

The sanctions list includes the Capital Bank of Central Asia and its director Kantemir Chalbayev, accused of financing Russian military supplies. Two Kyrgyz crypto exchanges, Grinex and Meer, were also blacklisted, along with entities supporting the A7A5 stablecoin.

UK Sanctions Minister Stephen Doughty said: “If the Kremlin thinks it can launder funds through shady crypto networks, they are deeply mistaken.”

Other sanctioned entities include Luxembourg-based Altair Holding, CJSC Tengricoin, Old Vector, A7A5 director Leonid Shumakov, and several individuals linked to the network.

Kyrgyz president rejects claims

Kyrgyz President Sadyr Japarov dismissed London’s accusations, insisting none of the country’s banks help Russia evade sanctions. He stated that only the state-owned Keremet Bank, already sanctioned by Washington, works with the Russian ruble.

Japarov stressed that Bishkek remains committed to international obligations but will protect national economic interests.

Analysts warn that UK sanctions on Kyrgyz banks and crypto exchanges increase risks for regional finance and may reduce the role of stablecoins in Russia’s cross-border payments.