A7A5, a ruble-pegged stablecoin, is officially issued in Kyrgyzstan by the company Old Vector under the country’s new digital asset regulatory framework. Despite its claims of transparency and regulatory compliance, A7A5 has been flagged in multiple reports as a vehicle for Russian money laundering and sanctions evasion, with billions in volume processed through the Grinex exchange—widely seen as the successor to the sanctioned Russian crypto platform Garantex.
Key Findings
- Official Issuer: Old Vector, a Kyrgyz-registered company, is the official issuer of A7A5 (Sources: 1234).
- Regulatory Framework:
- Issued under Kyrgyzstan’s Law “On Virtual Assets” No. 12 (effective January 21, 2022), which mandates licensing, fiat backing, regular audits, and state supervision for all token issuers (Sources: 1234).
- The Ministry of Finance of Kyrgyzstan oversees compliance and licensing for digital asset projects (Sources: 12).
- Reserve Structure: Backed 1:1 by Russian ruble deposits, reportedly held in Russian banks with correspondent relationships in Kyrgyzstan—specifically, Promsvyazbank, a sanctioned Russian state-owned bank (Sources: 15678).
- Audit and Transparency: Audited quarterly by Kreston Bishkek LLC, with reserve reports published for public review (Source: 14).
- Operational Red Flags:
- The vast majority of A7A5’s $9.3 billion in transaction volume is processed via Grinex, a Kyrgyz-based exchange linked to the now-sanctioned Garantex (Sources: 9101112137148).
- Transaction patterns and wallet analysis suggest use for internal fund movements, not organic adoption—raising AML and sanctions evasion concerns (Sources: 91056127148).
- Sanctions Exposure: A7A5’s structure and flows present a clear risk of facilitating Russian sanctions evasion, with reserves in a sanctioned Russian bank and operational overlap with entities and individuals under international restrictions (Sources: 5151278).
Regulatory and Compliance Analysis
| Aspect | Details |
|---|---|
| Issuer | Old Vector (Kyrgyzstan) |
| Regulatory Law | Law of the Kyrgyz Republic “On Virtual Assets” No. 12 (2022) |
| Oversight | Ministry of Finance, Kyrgyzstan |
| Fiat Backing | Russian ruble, held in Promsvyazbank (sanctioned) |
| Audit | Kreston Bishkek LLC (quarterly audits, public reports) |
| Main Exchange | Grinex (Kyrgyzstan; widely seen as Garantex successor) |
| Compliance Concerns | High-velocity flows, limited transparency, links to sanctioned entities, money laundering risk |
Legal and Regulatory Implications:
- Kyrgyzstan’s regulatory regime for virtual assets is robust on paper—requiring licensing, audits, and fiat backing—but its practical enforcement is now under scrutiny due to the scale and nature of A7A5’s flows.
- The use of Promsvyazbank, a sanctioned entity, as the reserve bank for A7A5 directly undermines the effectiveness of Western sanctions and exposes Kyrgyzstan’s financial system to secondary sanctions risk.
- The operational overlap between Grinex and Garantex, and the involvement of fugitive or sanctioned individuals, further heightens the compliance and reputational risk for all counterparties.
Actionable Insight for Compliance Professionals
- Enhanced Due Diligence:
- Any exposure to A7A5, Old Vector, Grinex, or related Russian ruble stablecoins should trigger immediate enhanced due diligence and transaction monitoring.
- Sanctions Screening:
- Screen for indirect exposure to Promsvyazbank and other Russian state-linked financial institutions.
- Jurisdictional Risk Assessment:
- Treat Kyrgyzstan-based digital asset flows as high-risk, especially when involving ruble-backed stablecoins.
- Information Sharing:
- Proactively share intelligence on A7A5-related flows with international partners and regulatory authorities.
Call for Information
Have you encountered suspicious flows, wallet addresses, or counterparties linked to A7A5, Grinex, or Old Vector? Share intelligence, red flags, or typologies with the Crypto Compliance Report team. Your insights are vital for global financial integrity.
Sources:
- https://coincodex.com/article/67944/kyrgyz-crypto-innovation-hits-milestone-as-a7a5-passes-reserves-audit/
- https://www.ainvest.com/news/kyrgyzstan-launches-a7a5-stablecoin-boosting-crypto-hub-ambitions-2504/
- https://cointelegraph.com/market-releases/kyrgyzstan-is-developing-its-own-crypto-hub-a7a5-stablecoin-listed-on-the-regulated-exchange-meer-exchange
- https://coinmarketcap.com/currencies/a7a5/
- https://www.ainvest.com/news/a7a5-stablecoin-facilitates-9-3-billion-transactions-sanctions-concerns-2506/
- https://www.bitget.com/news/detail/12560604835196
- https://blockchainmagazine.net/crypto-coin-for-russian-shadow-payments-moves-9bn-a-sanctions-evading-stablecoin-storm/
- https://united24media.com/latest-news/russias-secret-crypto-weapon-ruble-stablecoin-moves-93b-to-evade-sanctions-9402
- https://99bitcoins.com/news/grinex-garantexs-successor-processes-over-9-4b-in-a7a5-ruble-backed-stablecoin/
- https://babel.ua/en/news/119155-fugitive-moldovan-oligarch-ilan-shor-founded-a-cryptocurrency-to-help-russia-circumvent-sanctions-it-has-already-been-sold-for-over-9-billion
- https://www.coindesk.com/policy/2025/03/21/shuttered-russian-crypto-exchange-garantex-rebrands-as-grinex-global-ledger-finds
- https://thediplomat.com/2025/07/how-russia-used-kyrgyzstan-to-reopen-its-financial-escape-routes/
- https://cointelegraph.com/news/russian-ruble-stablecoin-a7a5-grinex-link-garantex-ft
- https://www.financemagnates.com/cryptocurrency/russia-and-stablecoin-use-ruble-pegged-a7a5-moved-9b-on-one-crypto-exchange/
- https://www.moldovamatters.md/p/a7a5-how-shors-new-cryptocurrency
- https://a7a5.io
- https://coinstats.app/news/bb73c1a71756a695204529b18581310aeb5cbd44e42bb4184f6f611382f3ad90_RubleBacked-Stablecoin-A7A5-Unveiling-Alarming-Sanctions-Evasion-Risks/
- https://www.info-res.org/reports/a7a5-circumventing-sanctions-with-stablecoin-cryptocurrency/
- https://www.tradingview.com/news/cointelegraph:71a6cb23e094b:0-russian-ruble-stablecoin-a7a5-tied-to-garantex-successor-ft/
- https://www.coindesk.com/press-release/2025/04/15/kyrgyzstan-establishes-a-crypto-hub-a7a5-stablecoin-debuts-on-regulated-meer-exchange
- https://en.fergana.agency/news/138623/
- https://www.binance.com/en/square/post/26241273922953
- https://www.mexc.co/tr-CT/news/russian-ruble-backed-stablecoin-a7a5-moves-9-3b-in-four-months-report/20124
- https://x.com/polidemitolog/status/1938371697587187861
- https://www.coingabbar.com/en/crypto-blogs-details/hong-kong-finalizes-its-stablecoin-bill-ruble-pegged-a7a5-stands-out-with-full-reserves-and-regulatory-backing
