EU Finance Ministers Meet Tomorrow To Discuss Euro Stablecoin Issuance: Why Is EU Sanctioning A7A5 Stablecoin?

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RegExp("[?&]notifications=1(&|#|$)");"desktop"===y&&i&&b.test(window.location.search)&&(i.checked=!0)};ge("ybar-mod-notification",(function(e){var t={isUH3:"crunch"===e.getConfig().ytheme,notifContainer:document.getElementById("notification-container"),notifBadge:document.getElementById("notif-badge"),notifMenu:document.getElementById("ybarNotificationMenu"),notifMenuOpener:document.querySelector("#ybarNotificationMenu + label"),notifDropdown:document.getElementById("notifDropdownContainer"),tooltipContainer:document.querySelector(".".concat($n)),notifLabel:document.querySelector(".".concat(Xn))};t.notifDropdown&&so(e,t)}))}()}};]]>Akriti SethWed, October 8, 2025 at 3:59 PM GMT+2 3 min readOn 9 October 2025, European Union finance ministers are meeting to discuss EU’s position on Euro-backed stablecoins. While the development of Euro-denominated stablecoins is coming along, its a long way to go before it can compete with the US.According to a 8 October 2025 Reuters report, the finance ministers will discuss if Markets in Crypto-Assets Regulation (MiCA) needs changes for Euro stablecoins. Furthermore, the focus of the meeting will be balancing risk mitigation and financial innovation.The crypto community was quick to point out that EU was still just catching up to the US when it comes to stablecoin regulation. An X user pointed out that the global stablecoin market is now close to 300 billion dollars, yet euro-based tokens account for only around 0.2% of that total. “The US Genius Act passed in July has effectively locked in dollar dominance by requiring issuers to back their stablecoins with US dollars or Treasuries. That design ensures the dollar’s reach will extend seamlessly into the digital era.”So far, Euro stablecoins account for only $620 million of $300 billion market.EXPLORE: 10 Best AI Crypto Coins to Invest in 2025The EU is targeting the Russian Ruble-backed stablecoin A7A5 linked to Russia’s Promsvyazbank (PSB)- a state-owned bank. But why? A7A5 is used to convert Ruble-denominated funds into various cryptocurrencies and is actively traded on platforms like Grinex. The controversial Kyrgyzstan-based Grinex converts A7A4 tokens to dollar-pegged USDT, which is subsequently routed into broader crypto markets, including Europe.This is now the go-to method for Russians seeking to bypass traditional sanctions by moving capital into decentralized digital assets.What will EU’s sanctions on A7A5 do? They will restrict access for EU-based Virtual Asset Service Providers (VASPs) to transact with the stablecoin. Hence, European exchanges and crypto service providers face increased compliance obligations.The sanctioned Russian crypto exchange Garantex resurfaced under the name Grinex. After the Garantex website was taken down and its wallets were frozen, the sanctioned exchange provides access to crypto services through the alternative platform.Read More: Launch Of Euro-Backed Stablecoin In H2 2026? Nine European Banking Giants Join Forces Nine of Europe’s biggest banks—including ING, UniCredit, Danske Bank, SEB, KBC, DekaBank, Banca Sella, and Raiffeisen Bank International—have decided to collaborate on a euro-backed stablecoin. Under the European Union’s (EU) Markets in Crypto-Assets Regulation (MiCA) framework, the collaborating banks will roll out the stablecoin in the second half of 2026. Will this be a game-changer for European crypto payments? 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