EU Sanctions A7A5 Stablecoin to Block Russian Crypto Flow into Europe

The European Union has moved to sanction A7A5, a ruble-backed stablecoin tied to Russia's Promsvyazbank, as part of broader efforts to curb sanctions evasion. The token, which facilitates ruble-to-crypto conversions through Kyrgyzstan before reaching European markets, represents just 2.37% of Bitcoin trading volume in the region.

Grinex and A7A5 have emerged as key conduits for converting Russian currency into digital assets, with transactions often routed through USDT. While the sanctions may increase compliance burdens, analysts suggest the limited market share of ruble-backed flows will prevent major liquidity disruptions in EU crypto markets.

The stablecoin's issuer, payments firm A7, maintains ties to Moldovan banker Ilan Shor and the Russian state-owned PSB. This action follows previous sanctions against Russia-based Garantex exchange, which played a role in A7A5's creation.