Can EU Sanctions Stop The Russia-Backed Stablecoin’s Shocking Growth?

New reports claim that the EU is considering sanctions against A7A5, a ruble-backed stablecoin. The firm has been circumstantially linked to international money laundering, but there are many unanswered questions.

Meanwhile, the token has been growing in prominence despite US sanctions, moving $6 billion since August. A7A5 is now the world’s largest non-dollar stablecoin, and it’s making crucial inroads with the crypto community.

Sanctions Against A7A5?

Since a Kyrgyzstani firm launched A7A5 a few months ago, the asset has attracted a lot of controversy. Although its direct connections to the Russian government are unclear, A7A5 has surfaced in international money laundering and alleged election interference in Moldova.

To that end, the EU is considering new sanctions against A7A5, a few weeks after the US took similar measures. However, it’s unclear how much this will accomplish.

Even though legal pressure is mounting from leading financial markets, A7A5’s market cap has increased, making it the world’s largest non-dollar stablecoin:

A7A5 Market Cap (Self-Reported). Source: CoinMarketCap Rising Prominence in Crypto

Indeed, despite the threat of sanctions, A7A5 has been making numerous inroads with the international crypto community. The firm was recently listed as a platinum sponsor at TOKEN2049, a major industry conference.

Although community backlash and questionable legal status caused organizers to revoke its sponsor designation, it still played a prominent role.