UK Sanctions HTX, Cites Support for Russia

The United Kingdom on Tuesday imposed sanctions on HTX, the exchange formerly known as Huobi Global S.A., accusing it of providing financial services to A7 Limited Liability Company and thereby supporting the Russian government. The designation is part of a wider sanctions package that targets exchanges, banks and firms the government links to sanctions evasion.

The UK government said the Secretary of State has reasonable grounds to suspect HTX provided funds, economic resources or other services to A7 LLC, which operates in a sector the government described as strategically significant to Russia. The listing also names Garantex Europe OU, and applies to other crypto entities including Aifory Pro and Arvix LLC.

Regulation 17A was used in these listings, marking the first time the UK has applied that provision to crypto exchanges. Officials said the regulation expands the tools available to prohibit channels the government believes could be used to circumvent international restrictions.

The sanctions impose financial and operational limits on designated parties. UK persons and firms are barred from dealing with listed entities and any assets subject to UK jurisdiction can be frozen. The government said enforcement will be carried out by UK authorities and that the designations may prompt further regulatory and legal scrutiny of other digital-asset platforms operating in or serving UK customers.

HTX rebranded from Huobi Global S.A. and has faced regulatory scrutiny in the UK before. In February, the Financial Conduct Authority opened legal proceedings alleging unlawful financial promotions by the exchange across its website and social media channels. HTX did not immediately respond to requests for comment. Justin Sun is listed as a global advisory board member at HTX.

The sanctions come amid ongoing international efforts to adapt measures to cover digital finance. UK regulators have focused on marketing practices, anti-money-laundering checks and the provision of services that could enable sanctioned parties to access financial resources.