Kyrgyzstan’s President Sadyr Japarov has formally appealed to the leaders of the United States and the United Kingdom following recent sanctions targeting the country’s cryptocurrency networks and financial institutions, which are alleged to have facilitated Russian efforts to evade international sanctions.
SANCTIONED: financial and cryptocurrency networks funnelling money to the Kremlin ⬇️https://t.co/y8wWmogtHI
— Foreign, Commonwealth & Development Office (@FCDOGovUK) August 20, 2025
On August 20, 2025, the UK imposed sanctions on Kyrgyz crypto entities linked to the stablecoin A7A5, pegged to the Russian rouble. The UK government alleges that this network processed over $9.3 billion in just four months, aiding Russia’s circumvention of Western sanctions. Alongside A7A5, the UK sanctioned entities including Grin LLC, Vector LLC, a Luxembourg-based company, and Kyrgyz financial institutions such as Capital Bank and its director—accused of helping Russia fund military procurements. The sanctions freeze all UK-based assets of these entities and block them from the London financial system.
Washington had earlier targeted Grin and Old Vector for similar reasons, accusing them of facilitating sanctions evasion and illegal crypto activities. The US had previously sanctioned Kyrgyzstan’s Keremet Bank, a state-owned entity handling Russian rouble transactions, accusing it of helping Moscow bypass restrictions. President Japarov strongly rejected these claims, highlighting that only Keremet Bank manages these transactions under strict state oversight, with revenues channeled to the national budget. He affirmed Kyrgyzstan’s commitment to international obligations while cautioning against actions that harm the country’s economic interests.
UK Sanctions Minister Stephen Doughty criticised Kremlin-backed crypto networks as tools funding the war in Ukraine, pledging ongoing efforts with allies to cut off illicit financing channels. Meanwhile, calls grow for the UK to adopt a coordinated national stablecoin strategy to foster innovation responsibly and stay competitive globally.
Kyrgyzstan’s appeal stresses depoliticizing economic matters and urges US President Joe Biden and UK Prime Minister Rishi Sunak to reconsider the sanctions, saying they undermine the country’s trade and citizens’ interests.
Meanwhile, Binance has reopened access to a broader range of its Earn products for qualifying UK Professional Users, following recent regulatory clarifications in the country. Previously, regulatory constraints limited UK users from certain staking, savings, and loan features.
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