In a move that could affect Russia’s crypto ambitions, the EU has blacklisted the A7A5 stablecoin tied to the state.
Summary
- The European Union has adopted its 19th sanctions package, targeting the Russia-linked A7A5 stablecoin and its developers.
- The sanctions include a full ban on transactions involving A7A5 across the EU.
- A Paraguay-based exchange linked to the token’s trading was also blacklisted for aiding sanction evasion.
The European Union has rolled out its 19th round of sanctions targeting Russia, introducing sweeping economic restrictions aimed at sectors fueling Moscow’s ongoing invasion of Ukraine. Among the newly targeted areas is cryptocurrency, with the EU alleging in the Oct 23 report that Russia is turning to digital assets to evade financial sanctions.
As part of the latest package, the bloc has moved to ban the A7A5 stablecoin, a ruble-backed digital asset developed with support from the Russian state. The EU also blacklisted the developer of the stablecoin, the Kyrgyz issuer behind the ruble-backed token, and the operator of a platform where A7A5 was actively traded.
For the first time, transactions involving the stablecoin have been outright banned across the EU. Authorities have also sanctioned a Paraguay-based crypto exchange that played a significant role in facilitating Russia’s crypto transactions through A7A5 and other digital assets.
The crackdown reflects growing concern over how Russia is leveraging crypto assets to bypass financial restrictions imposed by Western allies. According to recent reports, A7A5 has facilitated over $15 billion in covert transactions, helping Moscow sustain its war effort while avoiding the scrutiny of the traditional banking system.
To further clamp down on these effort
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Author: Grace Abidemi
