- EU to ban ruble-backed A7A5 stablecoin on Nov. 25 to block Russian crypto transaction routes.
- A7A5 linked to Promsvyazbank and Ilan Shor handled $68B in transactions before new sanctions.
- Ruble-backed flows form only 2.37% of EU Bitcoin trades, limiting impact on crypto liquidity.
The European Union is preparing to ban the trading and use of A7A5, a Ruble-backed stablecoin with ties to Russia’s sanctioned Promsvyazbank (PSB). Effective November 25, the EU A7A5 stablecoin ban aims to shut down a significant pathway used to convert Russian Rubles into cryptocurrency and move funds, potentially circumventing existing sanctions.
The move prohibits EU-based financial institutions and Virtual Asset Service Providers (VASPs) from handling transactions involving the A7 token, issued by payment firm A7.
Why the EU Moves to Ban Ruble Stablecoin A7A5 on Nov 25
The ban targets a specific mechanism used to bypass financial restrictions imposed on Russia. A7A5 facilitates the conversion of Rubles into digital tokens, often processed through exchanges in jurisdictions like Kyrgyzstan (e.g., Grinex), before being swapped for mainstream stablecoins like USDT on networks such as Ethereum and Tron. These funds can then potentially enter the broader European crypto market.
Regulators identified A7A5’s links to PSB and sanctioned Moldovan figure Ilan Shor as critical factors. Both A7 and the Russia-based exchange Garantex have faced prior sanctions from Western authorities for enabling illicit cross-border transfers involving restricted entities. This ban represents a tightening of the net.
Related: EU’s Concern of Trump’s Pro-Crypto Policies To Undermine Euro Stability
A7A5’s Mechanism: Linking Rubles, Crypto, and Sanctioned Entities
A7A5 serves as a bridge asset. Users convert Rubles into A7A5 tokens. These tokens are then moved, often via intermediary exchanges outside direct EU oversight, and swapped for globally accessible stablecoins like USDT. Data cited in reports indicated over 41 billion A7A5 tokens were circulating by September 2025, facilitating transactions reportedly worth around $68 billion.
This highlights the scale of the operation, even if its final destination isn’t always the EU market directly. The connection to sanctioned entities like PSB makes it a priority target for regulators seeking to enforce financial restrictions against Russia.
Low EU Market Impact Expected Despite $68B A7A5 Volume
While the $68 billion transaction figure associated with A7A5 seems substantial, analysts estimate its direct footprint within the EU crypto market is relatively small. Ruble-denominated trading reportedly accounted for only about 2.37% of the total Bitcoin volume within the EU during the first half of 2025.
Therefore, the ban is less about disrupting overall crypto liquidity in the EU and more about specifically closing a known sanctions evasion route tied to designated Russian financial channels and individuals.
Related: Stablecoin Showdown: Tether vs. EU Regulations
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