Kyrgyzstan appeals to us, British leaders about sanctions on crypto networks

Kyrgyz President Sadyr Japarov appealed to the US leaders and the UK on Thursday, after the VK had imposed sanctions on Kyrgyz Crypto networks that were said to be used by Russia to avoid Western restrictions.

The UK was aimed at eight people and entities on Wednesday, including four Kyrgyz companies, accused of facilitating Cryptocurrency Transactions.

“It is not necessary to politicize the economy,” Japarov told State News Agency Kabar.

The role of Kyrgyzstan in the strategy of Russian sanctions has become more important in recent years. Since the Invasion of Moscow in Ukraine in 2022, the country has become an important transithub for Russian trade and parallel input-de bilateral trade $ 3.5 billion in 2024 and the Russian investments in Kirgyizia in Kyrgyzstan in Kyrgyzstan to Kyrgyzstan’s export and the export of the export of the export of the export of the export and while also. Kazakhstan 64% in a year.

At the same time, Kyrgyzstan began to develop its crypto sector. Earlier this year, the Binance founder and former CEO Changpeng mentioned “CZ” ZHAO as an advisor on digital assets, and had issued more than 100 vasp reading at the end of 2024. But it is also increasingly associated with illegal Russian financial flows.

Sanctions Target A7A5 Stablecoin

The sanctions found on Luxembourg established and Kyrgyz entities, including crypto exchanges more and grinex, which they link to A7A5, a rouble-pegged stabile launched in Kyrgyzstan and available on the Tron And Ethereum block chains. The VK said that A7A5 had moved $ 9.3 billion in just four months.

Grinex, of which TRM lab analysts said in July that a new successor to the Sanctioned Garantex exchange of Russia could be, began to switch back in A7A5 weeks after the Garantex law enforcement disrupted in March.

TRM Labs has followed how Kyrgyzstan exchanges such as Grinex and more the same patterns on the chains show as Garantex, suggesting that coordination within the illegal financial ecosystem of Russia. Many of these Kyrgyz platforms, so noticed, reusing the same addresses, founders and contact details, which cause suspicions that they are Shell companies.

“It’s great to see that the UK yesterday takes decisive action against the entities, which have been associated with Russian sanctions for some time,” Isabella Chase, head of policy, EMEA at TRM Labs, said told Decrypt.

“These sanctions will make it more difficult for these entities to operate and will be noticed in the EU and the US.”

Western officials also say that the A7A5 token, together with exchanges of Grinex and more, are designed to bypass sanctions and reject billions back to Moscow.

“If the Kremlin thinks they can hide their desperate attempts to mitigate the blow of our sanctions by money laundering via Dodgy Crypto networks – they are very mistaken,” said Sanctions Doughty Minister in a statement.

“These sanctions keep the pressure on Putin in a critical time and combat the illegal networks that are used to lead money in his war box.”