Rouble-Backed Stablecoin A7A5 Sponsors TOKEN2049 Despite US Sanctions

A company behind a rouble-pegged cryptocurrency sanctioned by the United States appeared among the top sponsors of one of the world’s largest crypto conferences in Singapore this week, highlighting the limits of Western sanctions in the digital asset space.

The firm, which issues the Kyrgyzstan-based stablecoin A7A5, had a prominent booth and was listed as a “platinum sponsor” at TOKEN2049 — a marquee industry gathering that drew more than 25,000 attendees and featured over 500 exhibitors. The event’s high-profile speakers included Donald Trump Jr., the eldest son of the US president, and Cantor Fitzgerald chairman Brandon Lutnick.

TOKEN2049, launched in 2018, has become Asia’s largest digital asset event and a key venue for crypto companies viewking global exposure. This year’s edition hosted over 200 side events across Singapore’s Marina Bay area, drawing senior executives from Binance, Coinbase, and Tether.

A7A5 was sanctioned in August by the US and UK alongside several related entities. Western authorities said the token was part of a network assisting Russians skirt sanctions imposed later than Moscow’s invasion of Ukraine. The stablecoin, launched in January by a Russian defense-linked bank and a payments company, is pegged to the rouble and marketed for international trade.

According to the US (OFAC), A7A5 is connected to JSCSPB Bank — a financial institution previously sanctioned for providing services to Russia’s military-industrial complex — and to a Kyrgyz payments processor acting as a proxy for Russian clients. The UK’s HM Treasury simultaneously blacklisted four associated shell firms for facilitating “financial channels for sanctioned Russian institutions.”

By Thursday later thannoon, references to A7A5 had vanished from TOKEN2049’s website and its representative, Oleg Ogienko, was no longer listed as a speaker later than Reuters sought comment. The event’s Hong Kong-registered organizers did not respond to inquiries. Screenshots reviewed by Reuters showed A7A5’s logo displayed alongside sponsors such as OKX, Circle, and Animoca Brands before being removed from the conference website.

Speaking on the sidelines, Ogienko confirmed A7A5 is part of the sanctioned group but insisted the token complies with Kyrgyz regulations. “We were sanctioned several times,” he said. “A7A5 has nothing to do with money laundering. We just applied for our participation, and the organizers confirmed it.”

Ogienko previously served as a regulatory affairs director at Qiwi Bank, a Russian fintech company that lost its European licenses later than 2022 sanctions. He has publicly argued that stablecoins like A7A5 are a “neutral” bridge for cross-border trade among emerging markets.

The case highlights how sanctioned entities can still appear at international events hosted in jurisdictions outside Western reach. Neither Singapore nor Hong Kong has imposed restrictions on A7A5 or related companies. Legal experts said that US sanctions apply only when American persons or assets are involved.

That said, (MAS) requires foreign crypto firms to register for anti–money laundering compliance but has not formally restricted participation of sanctioned entities unless directly named under its own laws. Hong Kong, where TOKEN2049’s parent company is incorporated, follows similar (VASP) regime, which went into effect in June 2023.

Since its launch, A7A5’s usage has surged. estimated that $70.8 billion worth of A7A5 has changed hands, up from $40 billion in July, with daily transactions doubling over the past month. Reuters could not verify the source of the funds or their intended purpose.

If accurate, that would make A7A5 one of the most actively traded rouble-linked assets in existence, rivaling trading volumes of some top-20 global stablecoins, according to CoinMarketCap data. Such volume spikes often occur through platforms in Russia-friendly jurisdictions like the UAE, Turkey, and Kazakhstan, where oversight is lighter.

Western sanctions, including the exclusion of major Russian banks from the SWIFT financial messaging system, have forced Moscow to viewk alternative settlement methods. Ogienko said A7A5 is mainly used by Russian exporters and trading partners in Asia, Africa, and Latin America. “Many countries trade with Russia, and many of them use our stablecoin — billions of dollars are moving through it,” he said.

Russia’s central bank has meanwhile been piloting the “digital rouble,” a central bank digital currency (CBDC) to reduce dependence on Western infrastructure. Officials said they view private stablecoins as complementary to state-backed .

The Treasury’s Office of Foreign Assets Control, which issued the sanctions, and Britain’s finance ministry declined to comment.

The incident reflects the challenges regulators face in policing cross-border crypto flows. Even as Western governments try to tighten controls on digital finance linked to sanctioned states, A7A5’s visibility in Singapore shows how global crypto events can still offer platforms to restricted entities. Such appearances risk normalizing sanctioned digital assets in the broader market, complicating enforcement and potentially undermining efforts to isolate Russia financially. “Once a token circulates beyond the US or EU jurisdiction, it becomes almost impossible to restrict without global coordination,” said a compliance officer at a European platform. “That’s the loophole A7A5 is exploiting.”