Russian-Linked Stablecoin Appears at Asia Crypto Event
A stablecoin linked to Russia and under U.S. sanctions appeared at TOKEN2049 in Singapore this week. The token, called A7A5, is backed by the Russian rouble and was created in January. It is based in Kyrgyzstan and was developed by a Russian defense lender and payments firm.
A7A5 was listed as a platinum sponsor at the event. Its booth attracted attention, and Oleg Ogienko, the token’s regulatory affairs director, spoke on stage. However, references to the company were later removed from the event’s website on Thursday.
Sanctions and Regulatory Differences
The U.S. and U.K. sanctioned the firms behind A7A5 in August. They described the project as part of a network helping Russians bypass restrictions after the Ukraine invasion. Singapore and Hong Kong have not imposed similar sanctions, allowing the token to operate in Asia.
Ogienko told reporters, “We were sanctioned several times. We have nothing to do with money laundering and are compliant with Kyrgyz regulations.”
Growing Activity Despite Sanctions
Despite Western pressure, A7A5’s trading volume is rising. Blockchain analytics firm Elliptic reports the token has processed over $70 billion in transfers since launch. This is up from $40 billion two months ago. Daily transactions have doubled in the past month, showing increased demand from Russians excluded from traditional finance.
U.S. lawyers say Washington lacks jurisdiction if no U.S. persons are involved. This leaves Asian financial hubs as grey zones where sanctioned crypto projects can operate. With Russia cut off from global payment systems like SWIFT, tokens like A7A5 offer alternative networks for trade and remittances.
A7A5’s presence at TOKEN2049 highlights the limits of Western sanctions and the strong demand for alternative payment methods.
