The company behind the ruble-backed cryptocurrency A7A5, which has been targeted by US sanctions, was among the sponsors of a major crypto conference in Singapore this week, amid surging demand for the cryptocurrency used by Russians.
TOKEN2049 is one of the largest global crypto events, with over 25,000 attendees, over 500 exhibitors, and an elite group of speakers, including the eldest son of the US President.
In August, the United States and the United Kingdom imposed sanctions on several companies they alleged were behind A7A5, a ruble-pegged stablecoin based in Kyrgyzstan.
Launched in January by a Russian defense bank and a payments company, the cryptocurrency was described as part of a network helping Russians evade Western sanctions.
A7A5 trading rises
A7A5’s trading volume is on the rise, and its presence in Singapore highlights the difficulty Western countries face in trying to disrupt the alleged use of cryptocurrencies to evade sanctions.
Neither Singapore nor Hong Kong has announced sanctions on companies linked to A7A5, and the US has no jurisdiction if US persons are not involved.
Comprehensive Western sanctions since Russia’s full-scale invasion of Ukraine in February 2022, particularly the exclusion of Russian banks from the SWIFT global financial messaging system, have hampered Moscow’s trade options and prompted it to seek alternative methods for cross-border payments.
About $70.8 billion has been transferred from A7A5 since its launch in January, according to blockchain researchers Elliptic, up from $40 billion in July.
Elliptic reported that the daily number of A7A5 transactions has doubled over the past month. Reuters was unable to independently determine the source of A7A5’s funds or the reasons for these transfers.
The Office of Foreign Assets Control, the US Treasury agency that issued the sanctions, did not respond.
Ozhenko, who is based in Russia, said A7A5 was used for cross-border payments by Russian companies and business partners, adding that its target markets were Asia, Africa, and Latin America.
He said, “There are many countries that conduct trade with Russia, and some of them, even many of them, use our stablecoin… and that’s billions of dollars.”
The Singapore conference is one of the largest in the crypto sector, and speakers have included Donald Trump Jr., Brandon Lutnick, president of US brokerage firm Cantor Fitzgerald, and the heads of major crypto companies.
