Asia Morning Update: Why A7A5, a Russia-Linked Stablecoin, Might Exhibit at Token2049 Amid Singapore Sanctions

Singapore broke from its decades-long neutrality by sanctioning Promsvyazbank (PSB), a Russian bank tied to the ruble-backed stablecoin issuer A7A5, in response to Russia’s invasion of Ukraine. Yet, A7A5 legally participated in Token2049, as the event is organized by Hong Kong-based BOB Group, which follows local regulations that allow continued engagement with Russian entities.

The move created a compliance dilemma: a ruble-backed stablecoin linked to a sanctioned Russian defense bank ended up sponsoring Singapore’s largest crypto conference, exposing how sanctions can blur across jurisdictions.

At Token2049, former White House Crypto Policy Director Bo Hines highlighted Tether and its Genius-act-compliant stablecoin USAT, emphasizing the asset’s role in supporting U.S. dollar hegemony. Later, Oleg Ogienko, A7A5’s Director for Regulatory and Overseas Affairs, took the stage, representing the ruble-backed stablecoin under global scrutiny.

A7A5 is issued by Old Vector and operates on the A7 LLC payments platform, designed to help businesses operate within Russia despite sanctions. The stablecoin is backed by Promsvyazbank, a Russian state-owned bank sanctioned by multiple jurisdictions for financing Russia’s defense sector.

After the Ukraine invasion, Singapore aligned with Western sanctions by issuing MAS notice SNR-N01 in March 2023, barring local financial entities from interacting with major Russian banks, including PSB. This restriction applies to MAS-regulated institutions and crypto providers, effectively prohibiting transactions, sponsorships, or partnerships involving A7A5 or other PSB-backed assets.

Because Token2049 is organized under Hong Kong law, the BOB Group complied with local regulations, which maintain trade and financial ties with Russia. However, some sponsors expressed concern, calling A7A5’s inclusion a “compliance nightmare,” with one company describing it as giving them a “heart attack.” BOB Group later removed A7A5 from the official sponsor list, though the company continues to promote itself as a sponsor on social media, including for the Token2049 massage lounge, described as a space “where deals are closed while you unwind.”

Market Highlights

Bitcoin (BTC): Surged above $125,000, up 11% for the week, driven by U.S. spot ETF inflows and safe-haven demand amid the U.S. government shutdown and global liquidity expectations.
Ethereum (ETH): Trading around $4,500 ahead of December’s Fusaka upgrade, which aims to reduce rollup costs via PeerDAS, improve scaling efficiency, and strengthen ETH’s role as a monetary backbone.
Gold: Remains above $3,880 as investors seek safe-haven assets during the U.S. government shutdown.
Nikkei 225: Jumped over 4% to a record high after Japan’s LDP selected Sanae Takaichi as its new leader, with investors expecting her pro-growth “high-pressure” policies to maintain accommodative BOJ measures.