The European Union is considering sanctions against A7A5, the world’s largest non-US-dollar pegged stablecoin, backed by the Russian ruble. The sanctions would restrict EU-based organizations and individuals from engaging with the token directly or indirectly. Several banks in Russia, Belarus, and Central Asia are also targeted for enabling crypto-related transactions for sanctioned entities.

Following the EU’s September 19 sanctions on crypto platforms, A7A5’s market capitalization surged 250% in one day to over $491 million. Currently holding steady around $500 million, A7A5 represents roughly 43% of the total $1.2 billion market cap of non-US dollar stablecoins.

The EU’s sanctions join those imposed by the US and UK in targeting entities allegedly used by Russia to bypass Western sanctions. The United Kingdom and the US previously imposed similar restrictions on parts of the financial sector, including the Capital Bank of Central Asia and its director.

A7A5, launched in February on the Ethereum and Tron networks, has faced bans in Singapore and sanctions in the EU. Despite this, the company behind A7A5 appeared at Token2049, hosting a booth and having an executive speak on stage before being removed from the event and website.

The European Council describes sanctions as a tool to influence policies or actions and promote the EU’s Common Foreign and Security Policy objectives. Before sanctions are implemented, they require approval from all 27 EU member states and may still be amended or changed.

Read more at Cointelegraph: A7A5 under fire as EU weighs sanctions on ruble-pegged stablecoin