The European Union is considering adding the A7A5 stablecoin to its list of sanctioned entities. This token, pegged to the Russian ruble and launched in February on the Ethereum and Tron blockchains, is suspected of being used by Moscow to circumvent Western sanctions.
Rapid and worrying growth
On September 26, the market capitalisation of A7A5 increased by 250% in a single day, from 140 million $ to over 491 million $. It currently stands at around 500 million $, representing approximately 43% of the non-dollar-backed stablecoin market.
Controversial players behind the project
The A7A5 was launched by Ilan Shor, a sanctioned Moldovan banker, and the state-owned Russian bank Promsvyazbank. The stablecoin claims to be backed by “diversified fiat deposits in reliable banks within the Kyrgyz network,” a claim that is difficult to verify.
An international presence despite the bans
Despite the sanctions, the company supporting the A7A5 participated in the Token2049 trade show, with a booth and a speech by a senior executive, Oleg Ogienko, before being expelled from the event. This aggressive international positioning and the indirect support of certain Central Asian banks fuel suspicions about its role in sanctions evasion.
A coordinated response from regulators
The European Union is following in the footsteps of the United States and the United Kingdom, which had already targeted several entities in August, including the Capital Bank of Central Asia and two Kyrgyz crypto platforms, Grinex and Meer. As regulators track avoidance mechanisms, cryptocurrencies are becoming a strategic element in the diplomatic arsenal.
The approval of all 27 member states is still required for the sanctions to take effect, but this strong signal could redefine the traceability of geopolitical stablecoins.
