The European Union (EU) is reportedly weighing sanctions against A7A5, a Russian ruble‑backed stablecoin that has become the world’s largest non‑US‑dollar‑pegged stablecoin.
According to a Bloomberg report, the move would ban EU‑based companies and individuals from engaging directly or indirectly with the token.
A7A5’s rise has caught attention in global markets. Just a week after the EU announced new crypto sanctions on September 19, the stablecoin’s market capitalization spiked from $140 million to over $491 million in a single day — a 250 % jump, according to CoinMarketCap. It now holds steady at around $488 million, representing 43 % of all non‑US‑dollar stablecoins.
The token was launched in February on Ethereum and Tron by Moldovan banker Ilan Shor and Russia’s state‑owned Promsvyazbank. It claims to be backed by a “diversified portfolio of fiat deposits” held in Kyrgyz banks.
Despite sanctions and even a ban in Singapore, A7A5 still managed to appear at the Token2049 conference, though organizers later removed it from the event.
EU Targets Russia’s Sanction Evasion
The EU’s move is part of a broader effort to curb Russia’s attempts to bypass Western sanctions through crypto and other means. The bloc previously imposed restrictions on Russian crypto platforms and banks tied to sanctioned entities.
The United States and the United Kingdom have already taken similar steps, blacklisting banks and crypto exchanges linked to Russia’s financial networks.
The proposed EU sanctions still need approval from all 27 member states before enforcement. If passed, they would mark another significant step in tightening global financial pressure on Moscow’s digital asset activities.