Kyrgyzstan appeals to British leaders over sanctions over crypto networks

Kyrgyz President Sadir Japarov appealed to American and British leaders on Thursday. He said Russia is using it to circumvent Western restrictions after Britain imposed sanctions on Kyrgyzstan crypto networks.

The UK was accused on Wednesday of promoting sanctions by targeting eight individuals and groups, including four Kyrgyzstan companies. Cryptocurrency transaction.

“There’s no need to politicize the economy,” Japarov told the state communications agency. news.

Kyrgyzstan’s role in Russia’s sanctions avoidance strategy has become more important over the past few years. Since Moscow’s invasion of Ukraine in 2022, the country has become an important transport hub for Russian trade and parallel imports. Bilateral trade reached $3.5 billion in 2024, with Russia’s investment in Kyrgyzstan rising by a quarter.

At the same time, Kyrgyzstan began developing the crypto sector. Earlier this year, Binance founder and former CEO Changpeng “CZ” Zhao was designated as an advisor to digital assets and issued more than 100 VASP licenses in late 2024. But it is also increasingly linked to Russia’s illegal financial flows.

Sanctions Target A7A5 Stablecoin

Sanctions are based in Luxembourg, attacking Kyrgyz entities who exchange codes and exchange Grinex, linking to A7A5 on the ruble page Stablecoin Available in Kyrgyzstan Tron and Ethereum Blockchain. The UK said the A7A5 moved $9.3 billion in just four months.

Grinex, which TRM Labs analysts said in July was the brand successor to Russian-licensed Garantex Exchange, began offering withdrawal on the A7A5 after law enforcement broke Garantex in March.

TRM Labs tracks how Kyrgyz-registered exchanges such as Grinex and Meer show the same on-chain pattern as Garantex, suggesting adjustments within Russia’s illegal financial ecosystem. Many of these Kyrgyzstan platforms say they have reused the same address, founder and contact details and raised suspicions of being a shell company.

“It’s great to see the UK taking decisive action against the entities yesterday. It’s related to Russia’s avoidance of sanctions for a while,” said Isabella Chase, EMEA policy director at TRM Labs. Decryption.

“These sanctions make these entities more difficult to operate and attract attention in the EU and the US.”

Additionally, Western officials say that the A7A5 token was designed along with Grinex and Meer, along with the exchange registered in Kyrgyzstan, to avoid sanctions and return billions of dollars to Moscow.

“If we think that by washing the deal through dangerous crypto networks, they can hide their desperate attempts to ease the blow of our sanctions, they are very wrong,” UK sanctions minister Stephen Dauty said in a statement.

“These sanctions will maintain pressure on Putin at critical times and crack down on illegal networks used to concentrate money on his war chest.”