Asia Morning Headlines: Russia-Linked A7A5 Could Showcase at Token2049 Even Amid Singapore Sanctions

Singapore broke from decades of neutrality by sanctioning Promsvyazbank (PSB), the Russian bank backing the ruble-linked stablecoin issuer A7A5, in response to Russia’s invasion of Ukraine. Despite these sanctions, A7A5 legally participated in Token2049, as the conference is organized by Hong Kong-based BOB Group, which follows local laws allowing continued engagement with Russian entities.

The situation highlights a compliance challenge: a ruble-backed stablecoin tied to a sanctioned Russian defense bank ended up sponsoring Singapore’s largest crypto event, revealing how sanctions can become blurred across jurisdictions.

At Token2049, former White House Crypto Policy Director Bo Hines promoted Tether and its Genius-act-compliant stablecoin USAT, emphasizing its role in supporting U.S. dollar dominance. Later, Oleg Ogienko, A7A5’s Director for Regulatory and Overseas Affairs, presented on behalf of the ruble-backed stablecoin, which remains under global scrutiny.

A7A5, issued by Old Vector and used on the A7 LLC payments platform, is designed to facilitate in-country transactions despite sanctions. Its backing by Promsvyazbank—a Russian state-owned bank sanctioned worldwide for financing Russia’s defense sector—added to the controversy.

Following the Ukraine invasion, Singapore joined Western sanctions against key Russian banks, including PSB. MAS notice SNR-N01, issued on March 14, 2023, bars MAS-regulated institutions from transacting with sanctioned Russian banks, effectively prohibiting partnerships or sponsorships involving A7A5 or other PSB-backed assets.

Token2049’s Hong Kong registration allowed BOB Group to comply with local law, but the presence of A7A5 unsettled some sponsors. Several described the 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—advertised as a space “where deals are closed while you unwind.”

Market Highlights

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• Gold: 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 betting her pro-growth policies will maintain accommodative BOJ measures.