The move would prohibit EU-based individuals and companies from interacting with the token, either directly or via intermediaries.
The European Union is weighing a fresh round of sanctions targeting A7A5, a ruble-backed stablecoin that has rapidly become the largest non-US-dollar pegged token in the world.
The move would prohibit EU-based individuals and companies from interacting with the token, either directly or via intermediaries, according to internal documents reviewed by Bloomberg.
The proposed action forms part of the EU’s broader strategy to clamp down on financial instruments enabling Russia to skirt Western sanctions.
The bloc’s earlier crypto sanctions, announced on September 19, blocked transactions for Russian residents and imposed new limits on interactions with foreign banks linked to Russia’s crypto sector.
Several financial institutions across Russia, Belarus, and Central Asia are also under scrutiny. Authorities believe these banks may have facilitated sanctioned crypto-related activity, including the movement of digital assets linked to blacklisted entities.
A7A5 emerged in February, launched on the Ethereum and Tron blockchains by Moldovan banker Ilan Shor in partnership with Russia’s state-owned Promsvyazbank.
Marketed as a stablecoin backed by fiat reserves held in Kyrgyzstan’s banking network, the token’s rise has been swift, and controversial.
Despite being banned in Singapore, A7A5 maintained a presence at the recent Token2049 conference in Singapore, where it hosted a booth and sent a speaker. Organizers later removed the project from the event and its website.
In the wake of the EU’s September sanctions, A7A5 experienced a sharp spike in trading activity. On September 26, just a week after the announcement, its market capitalization jumped 250% in a single day, from $140 million to over $491 million.
It now holds steady near $500 million, representing nearly half of the $1.2 billion non-USD stablecoin market. The euro-pegged EURC from Circle trails behind, with a market cap of around $255 million.
EU Weighs New Sanctions on Russian Banks, Energy Firms, and Crypto Platforms
