Oleg Ogienko, Director for Regulatory and Overseas Affairs at A7A5, has publicly challenged accusations that his ruble-denominated stablecoin company violates compliance laws. Speaking at Consensus Hong Kong, Ogienko emphasized that A7A5 operates in full accordance with the regulations of Kyrgyzstan, where the company is incorporated, and maintains strict adherence to global compliance standards.
According to Ogienko, A7A5 follows comprehensive Know Your Customer (KYC) procedures and Anti-Money Laundering (AML) protocols embedded within its infrastructure. He also stated that the company complies with Financial Action Task Force (FATF) principles and undergoes regular audits to ensure transparency. “We are fully compliant with the regulations of Kyrgyzstan. We do not do illegal things,” he said, reinforcing the company’s position on regulatory compliance.
However, A7A5 faces significant challenges. Its affiliated entities, Old Vector LLC and A7 LLC, along with reserve-holding bank Promsvyazbank (PSB), are sanctioned by the U.S. Department of the Treasury. These sanctions restrict interaction with the U.S. dollar-based financial system. While U.S. sanctions limit global financial engagement, facilitating trade for Russian businesses is not illegal in Kyrgyzstan or Russia.
The stablecoin has emerged as a cross-border payment solution for Russian companies navigating international banking restrictions. A7A5 also provides indirect access to USDT liquidity through decentralized finance (DeFi) protocols without directly holding dollar-backed stablecoins. This positioning has fueled remarkable growth, with A7A5 reportedly adding nearly $90 billion in circulating supply last year — surpassing USDT’s $49 billion and USDC’s $31 billion growth during the same period, according to Artemis data.
Demand primarily comes from businesses in Asia, Africa, and South America trading with Russian importers and exporters. Although centralized exchanges remain cautious due to secondary sanctions risks, A7A5 is available on Tron and Ethereum networks, with limited DeFi liquidity currently available.
Despite political tensions and sanctions, Ogienko remains focused on expanding partnerships and blockchain integrations. He aims for A7A5 to handle over 20% of Russia’s international trade settlements in the future, positioning the stablecoin as a growing force in global cross-border crypto payments.
