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2w ago

EU Moves to Bar Use of Russia’s A7A5 Stablecoin as Token Leads Non‑Dollar Market

The draft sanctions would prohibit EU entities from using the ruble‑backed token, with measures also aimed at banks that facilitate related flows.

Eu considers sanctions on ruble backed stablecoin a7a5 linked to sanctioned russian actors
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Overview

  • The proposal requires unanimous approval by all 27 EU member states and could be amended before adoption.
  • A7A5’s market capitalization has climbed to roughly $450–500 million after a late‑September surge, making it the largest non‑USD stablecoin.
  • Operators deleted and re‑minted more than 80% of the token supply after U.S. and UK actions, with over $6 billion routed since August to sever links to sanctioned wallets.
  • Russia granted the token formal digital‑asset status, and Promsvyazbank integrated it into a platform for exporters and importers.
  • Analyses indicate A7A5‑linked flows represent a small share of EU Bitcoin trading volume, suggesting limited liquidity impact but higher compliance burdens for EU crypto firms.