The European Union is reportedly preparing the first-ever sanctions against a stablecoin — the rouble-backed A7A5, issued in Kyrgyzstan. Backed by Russian state lender Promsvyazbank (PSB) and sanctioned businessman Ilan Shor, A7A5 has rapidly become the world’s largest non-dollar stablecoin, reaching a market cap of nearly $500 million since its launch in early 2025.
Despite being tied to sanctioned entities, A7A5 appeared prominently at the Token2049 conference in Singapore, drawing attention from regulators. The token is widely used for cross-border payments across Asia, Africa, and Latin America, effectively allowing Russian-linked businesses to move funds beyond the reach of Western banking sanctions.
The controversy highlights a critical question: how can traditional sanctions, built for centralized financial systems, apply to decentralized blockchain networks? As regulators scramble to adapt, A7A5 demonstrates how digital assets are reshaping the boundaries of global financial control — and testing the limits of enforcement in a borderless digital economy.
Sources:
- Rouble-backed token targeted by sanctions sponsors top crypto conference
- EU Mulls Sanctions Against Russia-Linked Stablecoin A7A5
- Sanctioned A7A5 becomes largest non-US dollar stablecoin: Data