Crypto: Stablecoin A7a5 Grows Parallel System For Sanctioned Companies

Stablecoin ecosystem A7A5 has faced accusations of sanctions evasion and, according to some analysts, is creating an alternative, sanctions-free financial network.

As cryptocurrency is becoming increasingly intertwined with the traditional financial world, it’s also forming the foundation of a parallel, shadow financial system.

A January report from TRM Labs found a surge in illicit or illegal crypto use to an all-time high of $158 billion. This included a massive increase in crypto flows related to sanctions evasion.

This was led primarily by A7A5, a Russian ruble-based stablecoin launched by Russia-based company A7. Some $39 billion in sanctions-related crypto flows were attributed to the A7 wallet cluster.

Far from a small, underground system for illicit activity, A7A5 has facilitated billions of dollars’ worth of commercial activity, creating a “shadow” economy built on crypto.

After Russia invaded Ukraine in February 2022, it faced a raft of sanctions excluding the country and companies based there from participating in the global financial system.

Mastercard and Visa suspended international operations for cards issued in Russia, while cards issued abroad stopped functioning in the country. Russian banks were also closed off from SWIFT, severely limiting the ability of companies based in the country to conduct commerce abroad.

While these major Western payment networks were shut off, alternatives grew. Mir, the Russian payment network founded in 2017, expanded its market share after Visa and Mastercard’s exit.

Russia also turned to crypto for international commerce. In December 2024, Russian Finance Minister Anton Siluanov noted that his government had passed legislation authorizing foreign trade in “digital financial assets” and Bitcoin (BTC) that was mined in Russia. While Siluanov did not recommend crypto as a form of investment, he claimed that it was “the future” in the context of global payments settlement.

Enter A7A5. The coin was first introduced in February 2025 by the eponymous A7 financial platform. According to legal and professional services firm Astraea Group, A7 is co-owned by Moldovan oligarch Ilan Shor, himself sanctioned and residing in Russia, and the state-owned Promsvyazbank (PSB), which has strong ties to Russia’s defense industry.

Source: CoinTelegraph