Singapore broke from decades of neutrality by sanctioning Promsvyazbank (PSB), the Russian bank backing ruble-linked stablecoin issuer A7A5, following Russia’s invasion of Ukraine. Despite the sanctions, A7A5 was able to participate in Token2049 because the conference is organized by Hong Kong-based BOB Group, which follows local regulations that permit continued engagement with Russian entities.
The presence of a ruble-backed stablecoin tied to a sanctioned Russian defense bank at Singapore’s largest crypto event highlights how sanctions can blur across jurisdictions, creating compliance challenges for global participants.
At Token2049, former White House Crypto Policy Director Bo Hines promoted Tether and its Genius-act-compliant stablecoin USAT, emphasizing the role of U.S. dollar-backed assets in global finance. Later, Oleg Ogienko, A7A5’s Director of Regulatory and Overseas Affairs, delivered a presentation representing the ruble-backed stablecoin under international scrutiny.
A7A5, issued by Old Vector and used on the A7 LLC payments platform, is designed to facilitate in-country transactions despite sanctions. The stablecoin is backed by Promsvyazbank, a Russian state-owned bank sanctioned worldwide for financing Russia’s defense sector.
Following Russia’s invasion of Ukraine, Singapore joined Western nations in sanctioning key Russian banks, including PSB. MAS notice SNR-N01, issued on March 14, 2023, bars MAS-regulated institutions from interacting with major Russian banks, effectively prohibiting partnerships or sponsorships involving A7A5 or other PSB-backed assets.
While BOB Group complied with Hong Kong law, some conference sponsors were unsettled. Several described A7A5’s inclusion as a “compliance nightmare,” with one calling it a “heart attack.” In response, BOB Group removed A7A5 from the official sponsor list, although the company continues to promote itself on social media, including for the Token2049 massage lounge—a space advertised as “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 through PeerDAS, enhance scaling efficiency, and reinforce ETH as a monetary backbone.
- Gold: Continues above $3,880 as investors seek safe-haven assets amid 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 anticipating her pro-growth policies will keep BOJ measures accommodative.
