Sanctioned Ruble Stablecoin Issuer A7A5 Accelerates Expansion, Claims Full Compliance

According to Odaily, Oleg Ogienko, Head of Regulation and International Affairs for ruble-pegged stablecoin issuer A7A5, stated that the company fully complies with local Kyrgyzstan regulations and international anti-money laundering standards in its operations, denying any illegal activities. Despite its issuing entity and reserve bank being listed on the U.S. Treasury's sanctions list, the company is still pushing forward with business expansion, aiming to become a crucial settlement channel for cross-border trade.

A7A5 indicated that its stablecoin primarily serves businesses in Asia, Africa, and South America trading with Russia, providing cross-border payment solutions where some traditional financial channels are restricted. Ogienko claimed the company has established KYC and AML mechanisms and undergoes regular audits.

Data shows that A7A5's circulation volume grew by approximately $900 billion last year, outpacing the growth rates of USDT and USDC. Industry analysis suggests that the demand for alternative settlement methods formed under sanctions is a key reason for its rapid growth. Meanwhile, due to the involved entities being under U.S. sanctions, its business still faces high compliance and geopolitical risks.