EddieJayonCrypto
7 Oct 25
The EU proposes banning EU entities from trading A7A5, a ruble-backed stablecoin tied to Russian interests and a Moldovan fugitive banker, to prevent sanctions evasion. The token facilitated $68B in transactions, enabling Russian firms to bypass restrictions via crypto swaps.
**EU Proposes Sanctions Against Ruble-Backed Stablecoin to Curb Sanctions Evasion** The European Union is taking a bold step to combat the use of cryptocurrency for evading Western sanctions, targeting a ruble-backed stablecoin linked to Russian interests and a Moldovan fugitive banker. The proposed measures aim to ban all EU entities from trading the A7A5 token, a digital asset that has facilitated $68 billion in transactions since its launch, according to Bloomberg. The stablecoin, owned by Moldovan fugitive banker Ilan Shor and Russia’s state-owned Promsvyazbank, has 41.6 billion tokens in circulation, valued at $496 million as of September 26. Created by the payments firm A7—recently penalized by the U.S.—the token has become a tool for Russian entities to circumvent restrictions, particularly through exchanges like the blacklisted Garantex. EU officials argue that A7A5 enables Russian firms to bypass sanctions by facilitating crypto swaps, allowing them to access global markets and financial systems. The move is part of broader efforts to counter Moscow’s "digital workarounds" amid the ongoing war in Ukraine. "This stablecoin directly aids Russian entities in evading Western restrictions, and we must act decisively to cut off these channels," a EU spokesperson stated. The proposed sanctions require unanimous approval from all 27 EU member states. In addition to targeting A7A5, the measures would also penalize banks in Russia, Belarus, and Central Asia that facilitate the stablecoin’s transactions. This expansion reflects the EU’s focus on disrupting the financial networks supporting Russia’s military and economic activities. The initiative underscores the growing tension between regulatory bodies and the crypto sector, as authorities grapple with the challenges of tracking illicit financial flows in decentralized systems. While A7A5’s operators have not commented publicly, the EU’s actions signal a shift toward stricter oversight of stablecoins, particularly those tied to sanctioned jurisdictions. As the war in Ukraine continues, the EU’s push to curb crypto-enabled sanctions evasion highlights the evolving role of digital assets in geopolitical conflicts. The outcome of this proposal could set a precedent for how Western nations address the intersection of cryptocurrency and international sanctions in the years to come.