EU targets Russia’s ruble-backed stablecoin A7A5

The European Union, decked out in bureaucratic armor, taking aim at Russia’s prized crypto darling, a ruble-backed stablecoin named A7A5.

That’s actually the biggest stablecoin out there not tied to the almighty US dollar. And now, the EU wants to freeze it out completely.

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Financial whack-a-mole

The EU’s master plan? Blockade all digital handshakes between any EU-based peep or their sneaky third-party accomplices and this rogue token.

This comes courtesy of a Bloomberg scoop, which points the EU finger not only at A7A5 but also at a bunch of banks in Russia, Belarus, and Central Asia accused of running crypto-related transactions that help Russia sidestep sanctions.

It’s like a financial episode of “Whack-a-Mole,” but digital and with way fancier acronyms.

This latest move is just the newest chapter in the EU’s ongoing crusade against Russia’s crypto escapades.

Back in September, the EU hammered crypto platforms that had been cozy with Russia, unleashing sanctions that froze Russian residents’ transactions and tied up banks linked to the country.

Crypto’s just one tool in Russia’s increasingly creative toolbox for dodgeballing Western penalties.

They’ve also got a shadowy fleet smuggling goods, laundering cash through illicit gold trades, and basically playing every sandbox game known to global policy nerds.

43% of the whole non-US-dollar stablecoin market

What’s wild is that, right after earlier sanctions hit in late September, A7A5 decided to throw a surprise party for its own value.

The token’s market cap skyrocketed from a modest $140 million to $491 million, a nice 250% jump in just one day.

Fast forward to now, and it’s steady at around half a billion dollars, owning about 43% of the whole non-US-dollar stablecoin market valued at $1.2 billion. For comparison, the euro-pegged EURC is struggling behind at about $255 million.

Of course, EU sanctions are the kind of epic quests that require the blessing of all 27 member states before they become official law.

They can still be changed or watered down, but the EU Council describes sanctions as a tool to target those responsible and push them towards doing better, or at least, behave according to EU’s hard-nosed Common Foreign and Security Policy.

Booted

It’s a global dominance game. The UK and US already rolled out similar restrictions in August, dragging down entities allegedly helping Russia dodge sanctions.

This included Central Asian players like Kyrgyzstan’s Capital Bank and crypto exchanges Grinex and Meer.

And you know, despite the EU’s push and Singapore’s ban, the company behind A7A5 dared to show up at the Token2049 event, even snagging a speaking spot for exec Oleg Ogienko, until event organizers booted them offstage and scrubbed them from the site.

So here we are, watching a financial tug of war with a digital twist. The EU wants to strangle this rogue stablecoin, Russia is still scheming, and A7A5’s wild ride continues. Grab your popcorn.