Several major cryptocurrency exchanges warned users this week that transfers involving HTX could be subject to additional compliance checks after the UK sanctioned the exchange over alleged links to Russian financial networks.
The UK government added HTX to its Russia sanctions list as part of a wider program targeting entities accused of contributing to sanctions evasion and illicit financial activities linked to Moscow.
British authorities said they had “reasonable grounds to suspect” that HTX provided financial services linked to sanctioned entities, including crypto exchange Garantex and the A7 network, whose A7 LLC issues the ruble-pegged stablecoin A7A5.
The Foreign Ministry said the A7 network used a Kyrgyz bank and a major cryptocurrency exchange to repatriate around $1.5 billion to Russia. The A7 network claims to have moved more than $90 billion last year, the Foreign Ministry said, or about half of Russia’s annual military spending.
This designation has immediate practical consequences. UK financial institutions are now barred from doing business with the exchange and may be penalized for interacting with crypto transactions passing through it.
UK-registered virtual asset service providers are legally required to freeze funds linked to designated entities, blockchain analytics firm Elliptic said, and the sanctions extend to restrictions on correspondent banking relationships and payments involving HTX.
Following the announcement, exchanges including Binance, OKX, Bybit, and Bitget issued advisories warning users of increased monitoring related to HTX-related transactions.
Bitget said it had updated its sanctions monitoring systems and warned that transactions involving sanctioned entities or linked addresses could be rejected, restricted or terminated.
Binance, meanwhile, said transactions involving HTX “may be subject to additional compliance review” as part of its sanctions controls.
OKX separately warned users who previously engaged in arbitrage trading between HTX and OKX that continued transfers between the platforms after the sanctions could trigger further scrutiny of their accounts.
Bybit also warned that deposits or withdrawals involving addresses linked to HTX could be subject to additional anti-money laundering and risk control checks.
“Users are advised to avoid using addresses linked to HTX when interacting with Bybit and to ensure that all account activities remain in compliance with local laws and platform policies,” Bybit wrote.
HTX has rejected UK claims that it helped Russia’s financial infrastructure, even saying it had refused a listing request for the A7A5 stablecoin.
“To clarify, the listed entity Huobi Global SA is separate from the HTX online exchange,” the company said. “While Huobi Global SA will work with the relevant UK authorities to understand the basis of the action and promptly address any concerns, the designation does not and should not have any impact on the HTX Online Exchange.”
