A rouble-backed cryptocurrency, currently facing U.S. sanctions, was a key sponsor at a prominent crypto conference in Singapore this week, highlighting the increasing demand for the token among Russian users. The TOKEN2049 event stands out as a major highlight on the global crypto calendar, attracting over 25,000 attendees, featuring more than 500 exhibitors, and showcasing industry leaders among the speakers, including the eldest son of the U.S. president. In August, the U.S. and Britain imposed sanctions on multiple companies they identified as being linked to A7A5, a stablecoin tied to the rouble. This digital currency was introduced in January by a Russian defense lender in collaboration with a payments firm. The token was characterized as a component of a network aimed at assisting Russians in circumventing Western sanctions.
A7A5 showcased its presence at the TOKEN2049 conference, proudly recognized as one of over 20 “platinum sponsors” featured on the official conference website. At the conference, several staff members donned t-shirts emblazoned with the A7A5 logo, while Oleg Ogienko, took to the stage to address attendees. References to A7A5 on TOKEN2049’s website were taken down, and Ogienko was no longer featured as a speaker by 1300 on Thursday. TOKEN2049, registered in Hong Kong, has remained silent despite several attempts to reach out for comment. Ogienko confirmed that the A7A5 operation on the ground in Singapore was indeed part of the group that faced sanctions. “We were sanctioned several times,” he told on the sidelines of the event on Thursday. A7A5, according to him, was not involved in money laundering and adhered to the regulations set forth in Kyrgyzstan. “We just regularly applied for our participation, and the organisers confirmed the participation (at TOKEN2049),” he stated. Trading volumes on A7A5 are experiencing a significant surge, and its establishment in Singapore underscores the challenges faced by Western nations attempting to curb the purported use of cryptocurrency for sanctions evasion.
As of now, neither Singapore nor Hong Kong has issued any sanctions against companies linked to A7A5. According to three lawyers specializing in sanctions, the U.S. lacks jurisdiction in cases where no U.S. persons are involved. Sweeping Western sanctions following Russia’s full-scale invasion of Ukraine in February 2022, especially the exclusion of Russian banks from the SWIFT global financial messaging system, have significantly restricted Moscow’s trading options and compelled it to explore alternative avenues for cross-border payments.
According to blockchain researchers Elliptic, since its launch in January, a staggering $70.8 billion of A7A5 has been transferred, marking an increase from $40 billion in July. According to Elliptic, the daily volume of A7A5 transactions has seen a significant increase, doubling over the past month.
The Office of Foreign Assets Control, the U.S. Treasury agency responsible for the sanctions, along with Britain’s finance ministry, did not provide comments when approached for a response. Ogienko, based in Russia, stated that A7A5 was utilized for cross-border payments by Russian companies and their trade partners. He added that its target markets are Asia, Africa, and Latin America. “Numerous countries engage in trade with Russia, and a significant number of them utilize our stablecoin…representing billions of dollars,” he stated. The gathering in Singapore stands out as one of the largest events in the crypto industry. Among the speakers were Donald Trump Jr., Brandon Lutnick, the chairman of U.S. brokerage Cantor Fitzgerald, and leaders from prominent crypto firms.