UK sanctions 'Xinbi' for facilitating $20 billion in illicit crypto transactions: "Goal is to cut off access to the legitimate ecosystem"

The UK government has moved to impose sanctions on an illicit virtual-asset (cryptocurrency) market worth about $20 billion (approximately 27 trillion won), aiming to sever its links to the legitimate crypto ecosystem.

According to crypto news outlet Cointelegraph on the 27th (Korean time), the UK Foreign, Commonwealth & Development Office (FCDO) said via X (formerly Twitter) that it has added the Chinese-language crypto guarantee platform 'Xinbi' to its sanctions list. The platform has provided crypto services to organized crime groups across Southeast Asia, serving as a key piece of infrastructure for illegal activity.

Under the sanctions, the UK plans to exclude Xinbi from legitimate crypto networks and apply measures including asset freezes and restrictions on finance and trade. As a result, individuals, financial institutions, and crypto firms in the UK will be fully prohibited from transacting with, investing in, or providing services to Xinbi.

Chainalysis estimates that Xinbi processed about $19.9 billion in illicit funds between 2021 and 2025.

In its report, Chainalysis said, "These sanctions target the on- and off-ramps that enable large-scale fraud," adding that by blacklisting a leading Chinese-language guarantee marketplace, the UK is directly targeting the commercial market that has sustained fraud operators through payment support and marketing services.