EU Hits Russia-Linked Stablecoin and Exchange with New Economic Sanctions

The European Union has imposed new economic sanctions on Russia's A7A5 stablecoin and HTX exchange, targeting over a hundred banks and crypto operators.

The latest package of restrictive measures takes effect on August 23 and includes four designations related to the A7 network, which is behind the A7A5 ruble-backed stablecoin.

A7 Agent LLC and Limited Liability Company A71 are among the newly targeted entities, along with A7 Africa and A7 Nigeria, which feature in the A7's recent expansion into African markets.

The EU has previously sanctioned the Kyrgyzstan-based Meer exchange for allowing significant trading volume of A7A5. The new sanctions include 'Rapira', Aifory Pro (Sooty Ltd), ABCeX, and other entities that provide crypto-assets services or payment services established outside of the EU.

HTX has been accused by U.K. authorities of channeling over $1.5 billion back into the Kremlin's hands via its alleged support for A7A5. In response to sanctions in May from the U.K., HTX denied wrongdoing and ties to Huobi Global, despite court filings suggesting otherwise.

A recent report by blockchain intelligence firm TRM Labs found that HTX has been rapidly rotating tokens between digital wallets and networks to evade compliance officials.