Major crypto exchanges tighten HTX transfer checks after UK sanctions move

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Exchanges tighten HTX checks

Highlights

HTX was added to the UK's Russia sanctions list, with authorities alleging $1.5 billion was funneled back into Russia and $90 billion moved last year.
Binance, OKX, Bybit and Bitget warn users that transfers linked to HTX may face heightened compliance scrutiny, rejection or account termination post-sanctions.
UK financial institutions and virtual asset service providers are now required to freeze funds and restrict business with HTX, with immediate effect on industry operations.

Sanctions action triggers compliance response

As reported by the UK Foreign Office, HTX was added to the UK's Russia sanctions list in a wider package targeting entities accused of facilitating sanctions evasion and illicit financial activity linked to Moscow. British authorities say they have reasonable grounds to suspect HTX provided financial services connected to sanctioned entities including Garantex and the A7 network, whose A7 LLC issues the ruble-pegged A7A5 stablecoin.

The Foreign Office says the A7 network used a Kyrgyz bank and a major cryptocurrency exchange to channel an estimated $1.5 billion back into Russia. It also says the network claimed to have moved more than $90 billion last year, a sum the department describes as roughly half of Russia's annual military expenditure.

The designation carries immediate operational consequences for the sector. UK financial institutions are barred from doing business with the exchange, and UK-registered virtual asset service providers are required to freeze funds connected to designated entities, while restrictions also extend to correspondent banking relationships and payments involving HTX, according to blockchain analytics firm Elliptic.

Exchange warnings widen industry impact

After the sanctions announcement, Binance, OKX, Bybit and Bitget issue notices warning users about heightened scrutiny of HTX-related transactions. Bitget says it has updated its sanctions screening systems and warns that transactions involving sanctioned entities or linked addresses could face rejection, restrictions or account termination.

Binance says transfers involving HTX may be subject to additional compliance review under its sanctions controls. OKX also warns users who previously engaged in arbitrage trading between HTX and OKX that continued transfers between the platforms after the sanctions action could trigger additional scrutiny on their accounts.

Bybit says deposits or withdrawals involving HTX-linked addresses may face added anti-money laundering and risk-control checks, and advises users not to use HTX-related addresses when interacting with its platform. HTX rejects the UK's allegations that it supported Russia's financial infrastructure and says Huobi Global S.A., the listed entity, is distinct from the online HTX exchange, adding that the designation does not and should not affect the online platform.

In our earlier article on the UK’s sanctions targeting crypto routes linked to Russia, we explained how authorities were focusing on exchanges and payment networks suspected of helping sanctioned flows move across borders. We also outlined the role attributed to HTX/Huobi-linked entities and the A7 network in facilitating transactions under sanctions pressure, underscoring why regulators and firms are tightening screening and controls.

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