The TOKEN2049 conference in Singapore removed A7A5, a ruble-backed stablecoin, from its sponsor list following media inquiries about its ties to sanctioned Russian entities. This action came after scrutiny from U.S. and U.K. authorities, highlighting regulatory gaps in enforcing global sanctions. A7A5, which was sanctioned in August 2024 for aiding Russians in evading sanctions post-Ukraine invasion, had been listed as a platinum sponsor at the event, which drew over 25,000 attendees and featured high-profile speakers like Donald Trump Jr.
Transaction volumes for A7A5 have surged to over $70 billion, with daily transactions doubling in the past month, according to blockchain analytics firm Elliptic. Oleg Ogienko, A7A5's representative, confirmed the sanctions but insisted the token complies with Kyrgyz regulations, stating, "Many countries trade with Russia, and many of them use our stablecoin — billions of dollars are moving through it." After Reuters sought comment, references to A7A5 were swiftly removed from TOKEN2049's website, and Ogienko was dropped as a speaker.
The incident exposes challenges in policing cross-border crypto flows, as jurisdictions like Singapore and Hong Kong have not imposed restrictions on A7A5, allowing sanctioned entities to exploit loopholes. This underscores the growing use of alternative financial systems in international trade and the limitations of Western sanctions in the digital asset space.
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