The EU blocks the stablecoin A7A5 and Russian cryptocurrency platforms
9:00 a.m. ▪ 4 min read
The European Union has dealt a severe blow to Vladimir Putin by imposing sanctions on Russian cryptocurrencies and stablecoins. The aim is to cut off financing to Moscow and prevent sanction evasion through digital assets like Bitcoin or the mysterious A7A5.
In brief
The EU bans the stablecoin A7A5 and sanctions Russian cryptocurrency platforms to cut off funding for the war in Ukraine.
Eight banks and oil traders are under the EU's scrutiny for their role in evading Russian sanctions through cryptocurrencies.
The 19th EU sanctions package marks a turning point in the economic war, but its effectiveness will depend on the ability to control decentralized digital assets.
The stablecoin A7A5, Moscow's financial weapon: why the EU fears it so much
The stablecoin A7A5, linked to the Russian ruble, has become a key tool for Moscow to evade international sanctions, especially now that Russia has led the adoption of cryptocurrencies, surpassing the United Kingdom. Created with the support of the Russian state, A7A5 facilitates discreet financial transactions, often linked to funding the war in Ukraine.
According to the European Commission, significant volumes of A7A5 were used for cross-border payments. Thus, they escaped the attention of regulators. The EU decided to respond by banning all transactions involving this stablecoin in its member states. This measure affects not only the Kyrgyz issuer of A7A5 but also the cryptocurrency platforms that allow its exchange.
