The United Kingdom banned the Huobi cryptocurrency exchange and a Russian ruble stablecoin issuer this week as part of new sanctions against Moscow. A stablecoin is a digital currency designed to hold a steady value, usually tied to a real currency like the ruble. UK regulators said these restrictions target financial channels that help Russia avoid other economic penalties.
The UK has been tightening rules on cryptocurrency since Russia's invasion of Ukraine. Authorities worry that digital currencies can help countries and individuals move money without going through traditional banks that are already blocked. Huobi is one of the world's largest crypto exchanges and had served Russian customers despite earlier restrictions in other countries.
Russian citizens and businesses using these platforms will no longer be able to access them. Companies in the UK that work with Huobi or the ruble stablecoin now face legal penalties if they continue doing business with these entities. Banks and financial firms are already reviewing their ties to affected crypto services.
Other countries, including the United States, have taken similar steps to limit Russia's access to crypto markets. The UK move signals that major democracies plan to keep closing these loopholes. Regulators worldwide are expected to announce more restrictions in coming months as governments coordinate on Russia policy.