Sanctioned Russian banks support the Ruble stablecoin A7A5 card payments, attracting attention due to risks of circumventing sanctions and Money Laundering.

Russian users can now purchase the Ruble-pegged stablecoin A7A5 through payment cards from banks sanctioned by the West. This crypto asset is believed to be used to circumvent the financial restrictions imposed due to the Russia-Ukraine conflict, facilitating the global transfer of Russian funds and money laundering activities. Its connections to the fugitive Moldovan oligarch Ilan Shor and the Kyrgyzstan-registered Grinex exchange, which is allegedly the successor to the Russian-sanctioned exchange Garantex, have also raised concerns. Currently, this card payment service is limited to citizens of the Russian Federation who hold accounts with the Russian PSB bank (Promsvyazbank, sanctioned by the US, EU, UK, and Canada), allowing them to buy, sell A7A5, and exchange it for Rubles or USDT, offering approximately 8% annual returns. On-chain data indicates that over $9 billion has been transferred involving A7A5 within four months.

A7A5 stablecoin opens a purchasing channel for Russian bank cards Russian cryptocurrency media has revealed that the ruble-pegged stablecoin A7A5 is now available for purchase using bank cards. The project team announced this news on Monday. According to the major Russian crypto media Bits. media, this new option currently only supports transactions made with cards issued by PSB Bank (Promsvyazbank), but there are plans to expand support to other bank cards in the future.

Detailed Explanation of Purchase Process and Restrictions Users can initiate the purchase of A7A5 stablecoin through their personal account on the issuer's website (registered in Kyrgyzstan). This process requires the user to provide a Russian mobile number and undergo identity verification (KYC), which includes submitting passport details and proof of address. To complete the purchase, the user must specify the quantity of tokens to buy and choose the network (Ethereum or Tron). After payment, the tokens will be credited to the user's wallet. Users can also sell their stablecoins, and the received Russian Rubles will be transferred to the bank account linked to their payment card. The purchase threshold is 100 coins of A7A5, and the withdrawal threshold is at least 600 coins. The monthly limit is 1.2 million coins of A7A5, with purchase and sale quotas each accounting for half. A7A5 can be exchanged for USD stablecoin USDT, or stored in a wallet that offers approximately 8% annual yield. Currently, only citizens of the Russian Federation who have a PSB bank account can use this card payment service.

The scale of the Ruble stablecoin has surged, raising international concerns about its uses A7A5 is a relatively new stablecoin project launched in February of this year, claiming to be backed by PSB bank deposits. PSB bank is a state-owned financial institution in Russia, which has been sanctioned by the US, EU, UK, and Canada due to Russia's military actions in Ukraine. A7A5 holders can earn a passive income equivalent to half of the accrued interest on bank deposits daily. Bits. media points out that this stablecoin is issued by a company named Old Vector, which is registered in a jurisdiction in Central Asia that allows for the legal handling of Russian currency and digital assets.

Attention is drawn to evasion of sanctions and suspicious associations The cryptocurrency has been linked to the exchange Grinex, which is headquartered in Kyrgyzstan. Grinex is believed to be the successor to the Russian cryptocurrency exchange Garantex (whose website was shut down by U.S. law enforcement earlier this year). A few weeks after Garantex's closure, Grinex began processing withdrawals using the A7A5 token. The Financial Times previously reported that the stablecoin was used to transfer over $9 billion in just four months. A report released last month by blockchain forensics company TRM Labs noted that it found "exchanges registered in Kyrgyzstan repeatedly facilitated transactions related to sanctioned Russian entities." The agency emphasized the existence of a "growing pattern of Russian actors using this Central Asian country to evade sanctions and procure dual-use goods for the war in Ukraine."

Behind the Scenes Operators: Fleeing Oligarchs and Sanctioned Banks Although the A7A5 team claims that its project is "completely independent", the stablecoin was created by a Russian company called A7. The majority stake in A7 is held by Moldovan oligarch Ilan Shor. Shor was convicted of bank fraud in his home country and fled to Russia a few years ago. This businessman has since become a Russian citizen and is accused of buying votes in Moldova's recent elections. Promsvyazbank (PSB) also holds shares in A7. Last year, Viorel Cernăuțeanu, the head of the Moldovan police, accused PSB of also being involved in buying votes activities domestically.

( Conclusion: ) A7A5 stablecoin has enabled card payment functionality through the sanctioned Russian bank PSB, providing Russian users with a new channel for fund inflows and outflows under strict financial controls. Its high yields and convenient exchange mechanisms are quite attractive. However, its issuance structure (involving registered entities in Central Asia), close ties with the suspicious exchange Grinex, and the background of core controller Ilan Shor and PSB bank being embroiled in an election fraud scandal have plunged it into a vortex of evading international sanctions and Money Laundering risks. International regulatory bodies and blockchain analysis companies have closely monitored its fund flows, particularly the allegations of it being used to transfer large amounts of money and procure sensitive materials at Central Asian nodes. In the future, this stablecoin and its associated parties may face more stringent scrutiny and sanction risks, and users need to be highly vigilant regarding compliance and asset security concerns.