Sanctioned Russian Stablecoin Appears at Singapore’s Token2049 Raising Compliance Questions
A ruble-backed cryptocurrency tied to a sanctioned Russian bank made a striking appearance at Singapore’s major crypto conference, Token2049, drawing attention from industry participants and regulators alike.
The stablecoin, A7A5, linked to Promsvyazbank (PSB) — a state-owned Russian lender blacklisted by the U.S., U.K., and other Western nations — managed to secure a sponsorship slot at the event despite existing sanctions in Singapore.
How Did a Sanctioned Coin Sponsor One of Asia’s Largest Crypto Events
Token2049, held annually and organised by Hong Kong-based BOB Group, attracts tens of thousands of attendees and hundreds of exhibitors from across the globe.
This year’s event featured more than 25,000 participants and high-profile speakers including Donald Trump Jr. and top executives from leading crypto firms.
A7A5’s presence, however, has sparked debate due to its connections to PSB, which Singapore sanctioned in March 2023 for financing Russia’s defense sector.
Under these sanctions, financial institutions in Singapore are prohibited from dealing with PSB or its affiliates.
The organisers’ Hong Kong base allowed a regulatory gap that enabled A7A5 to participate.
Hong Kong has a more permissive stance toward Russian-linked entities, in contrast to Singapore’s strict enforcement.
Event staff were seen wearing A7A5-branded shirts, and the stablecoin’s regulatory director, Oleg Ogienko, delivered a speaking slot about the project.
After media inquiries, references to A7A5 were removed from Token2049’s official website, though the company continued to promote its involvement on social media, including sponsorship of the conference’s massage area.
A7A5 Moves Beyond Sanctions With Growing Usage
A7A5, launched in January 2025, is pegged to the Russian ruble and primarily used for cross-border payments by Russian companies and their trading partners.
According to Ogienko, the stablecoin targets markets in Asia, Africa, and Latin America.
“There are many countries who trade with Russia, and some of them, many of them, use our stablecoin… and these are billions of dollars.”
Despite U.S. and U.K. sanctions imposed in August 2025 on A7A5 and associated companies — described as part of a network designed to help Russians bypass Western restrictions — the coin continues to operate.
Trading volumes have surged, with blockchain research firm Elliptic reporting that over $70.8 billion has been transferred since its launch, up from $40 billion in July, and daily transactions have doubled in the past month.
What Makes A7A5 a Key Tool in Russia’s Alternative Financial System
A7A5 is part of the A7 network, a parallel financial system developed after Russian banks were cut off from the U.S.-led financial order following the 2022 invasion of Ukraine.
Promsvyazbank, which holds a 49 percent stake in the A7 network, has formal backing of the Russian state and facilitates official cross-border payments using the stablecoin.
Loans from VEB, a Russian state development bank, have supported the network’s rapid expansion, with the A7 network claiming to have moved more than $86 billion in 10 months.
The network has also adapted to sanctions challenges.
According to the Financial Times, more than 80 percent of A7A5’s supply was destroyed and immediately recreated to eliminate links to the sanctioned exchange Grinex, a move reflecting lessons learned from previous U.S. enforcement actions.
A7A5 operates on both Tron and Ethereum blockchains, and its issuer, Old Vector, was blacklisted by the U.S. in August.
How International Sanctions Struggle to Track Crypto Flows Across Borders
The Token2049 appearance highlights the difficulties regulators face in policing cryptocurrencies that operate across multiple jurisdictions.
While U.S. and U.K. authorities have sanctioned A7A5, neither Singapore nor Hong Kong has imposed restrictions, allowing the stablecoin to function freely at an international event.
Sanctions experts noted that the U.S. has limited reach in transactions that do not involve U.S. persons.
Ogienko defended the project, stating,
“We were sanctioned several times. We have no ties to money laundering and comply with Kyrgyz regulations. We just regularly applied for our participation, and the organisers confirmed the participation (at TOKEN2049).”
Could Crypto Conferences Become a Loophole for Sanctioned Entities
The visibility of A7A5 at a global event like Token2049 raises questions about compliance risks for other sponsors and participants.
Several companies expressed unease about being associated with a sanctioned entity, describing it as a “compliance nightmare.”
The case illustrates the growing challenge for global crypto events and participants: navigating differing sanctions laws while managing reputational and legal risks.
As the A7 network expands, supported by Russian state-backed institutions, it demonstrates how cryptocurrencies are increasingly integrated into alternative cross-border financial systems, complicating efforts to enforce sanctions in an increasingly borderless market.
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