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- Updated on: May 27, 2026
On May 26, 2026, the Foreign, Commonwealth and Development Office designated 18 entities under the Russia (Sanctions) (EU Exit) Regulations 2019. HTX, formerly Huobi, is on the list. So is the A7 payments network it allegedly used to channel $1.5B to Russia. This is the first time a UK sanctions designation has directly named a crypto exchange.
Key takeaways
HTX is now a UK-designated entity under Russia sanctions regulations. Any UK person must cease transactions immediately.
The A7 payments network, which reportedly moved $90B+ last year, is also designated.
OFSI expects exposure reporting. If your firm touched HTX flows, the clock is running.
Screening lists updated before May 26 will not catch this designation.
HTX already faced FCA enforcement action for illegal financial promotions before the sanctions designation.
Who got sanctioned and why
The FCDO announcement targets entities the UK government says helped Russia move money despite existing sanctions. HTX allegedly served as a gateway, routing funds through the A7 network, a payments infrastructure that The Block reports processed tens of billions in volume last year. Eighteen entities are listed. The designations fall under the same Russia sanctions regime used to target banks and oligarchs since 2022, but this is the first time it has reached a crypto exchange.
The designation imposes an asset freeze, trust services restrictions, director disqualification, and correspondent banking and payment-processing prohibitions. UK persons and businesses must cease all transactions with the listed entities immediately.
HTX: a compliance problem that has been building for years
HTX is not a small or obscure platform. Founded in Beijing in 2013 by Leon Li as Huobi, it grew into one of Asia’s largest crypto exchanges, accumulating 44 million registered users and over $31 trillion in cumulative trading volume by 2023.
In late 2022, Li sold his controlling stake to About Capital Management, an investment firm associated with Justin Sun, founder of the TRON blockchain. The exchange rebranded from Huobi to HTX in September 2023.
The compliance red flags predate the sanctions. In 2025, the UK’s Financial Conduct Authority began legal proceedings against HTX for illegally promoting cryptoasset services to UK consumers. The FCA said HTX continued publishing financial promotions in breach of UK rules on its website, TikTok, X, Facebook, Instagram, and YouTube, even after being warned. The FCA asked Google and Apple to remove HTX from UK app stores. In October 2025, the FCA commenced High Court proceedings against Huobi Global S.A. in the Chancery Division.
Outside the UK, the Philippine SEC issued a public advisory warning consumers against HTX due to its lack of registration. Justin Sun himself faces an open SEC case in the United States over alleged unregistered securities sales and wash trading, filed in March 2023.
For compliance teams, HTX has been a name to watch for years. The UK sanctions designation turns “watch” into “act.”
The A7 network: state-backed sanctions evasion at scale
The A7 network is not a typical payments company. Founded by Ilan Shor, a fugitive Moldovan oligarch who obtained Russian citizenship, it operates as what the Centre for Information Resilience describes as “sanctions evasion as a service.”
Russia’s state-owned defence bank Promsvyazbank holds 49% of A7. Vladimir Putin attended a virtual ribbon-cutting for A7’s Vladivostok branch in September 2025. The network created a ruble-pegged stablecoin called A7A5, which can be swapped for mainstream stablecoins without identity verification, making fund flows difficult to trace back to sanctioned Russian entities.
The UK government says A7 moved over $90B in the past year, a sum that officials say approaches half of Russia’s annual military spending. The Moscow Times reports that $39B of that was linked directly to sanctions evasion.
This is the infrastructure HTX allegedly plugged into. Any counterparty exposure to HTX now carries exposure to a state-backed evasion network.
WhatOFSIexpects from you right now
The OFSI Consolidated List already reflects the new designations. Under the Russia sanctions regulations, UK persons must freeze assets, cease transactions, and report any dealings with designated entities. That includes indirect exposure. If your exchange processed flows involving HTX wallets, or if HTX appeared as a counterparty in your transaction monitoring, you are required to report it.
How to close the gap today
Three things to do before end of business:
Re-screen your counterparty list against the updated OFSI Consolidated List. Look for HTX, Huobi Global S.A., and any A7-linked entities.
Run a historical transaction search for any HTX-associated wallet addresses. Flag and document anything you find.
Check your screening tool’s update frequency. If you are relying on batch updates, you may already be behind. Crystal’s sanctions screening ingests new designations as they publish, so your coverage stays current without manual intervention.
Frequently asked questions
Is HTX sanctioned globally or only in the UK?
This designation is UK-specific, issued under UK domestic sanctions law. Other jurisdictions have not yet followed. However, given HTX’s parallel regulatory issues with the FCA, the Philippine SEC, and the US SEC case against Justin Sun, compliance teams should treat this as a signal that wider action may follow.
Does this affect firms outside the UK?
Directly, no. The legal obligation applies to UK persons and UK-nexus transactions. But if your firm has UK clients, UK correspondent banking relationships, or processes GBP transactions, you should assess exposure regardless.
What is the A7 payments network?
A7 is a payments infrastructure founded by fugitive Moldovan oligarch Ilan Shor, with 49% owned by Russia’s state defence bank Promsvyazbank. It created a ruble-pegged stablecoin called A7A5 that can be swapped for mainstream stablecoins without identity verification. The UK government says A7 moved over $90B in the past year.
What is HTX’s regulatory history?
HTX, formerly Huobi, has faced regulatory action across multiple jurisdictions. The UK FCA began High Court proceedings over illegal financial promotions in 2025. The Philippine SEC warned consumers against the platform. Justin Sun, associated with HTX’s parent company, faces an open SEC case in the US over alleged securities violations.
Do I need to file a report with OFSI?
If your firm has dealt with any of the 18 designated entities, you must report to OFSI. This includes direct transactions, frozen assets, and any knowledge of dealings. The OFSI reporting guidance details the process.
Your regulator is not going to wait for your next quarterly review. If HTX is in your data, find it today.
For informational purposes only. Not legal or compliance advice.
The time to audit your data, confirm your jurisdictions and renovate reporting frameworks is now. See how Crystal can help by requesting a demo here.
