By Rae Wee and Elizabeth Howcroft
SINGAPORE/PARIS (Reuters) -The business behind a rouble-backed cryptocurrency targeted by U.S. sanctions was among the sponsors of a major crypto conference in Singapore this week, as demand soars for the token, used by Russians.
The TOKEN2049 event is one of the biggest on the global crypto calendar, with more than 25,000 attendees, over 500 exhibitors, and industry elite among the speakers, including the eldest son of the U.S. president.
The U.S. and Britain in August sanctioned several companies that they said were behind Kyrgyzstan-based A7A5, a stablecoin pegged to the rouble that was launched in January by a Russian defence lender and a payments firm.
They described the token as part of a network for helping Russians evade Western sanctions.
A7A5 had a booth at the TOKEN2049 conference and was listed as one of more than 20 “platinum sponsors” on the conference website. Some conference staff wore t-shirts with the A7A5 logo and its director for regulatory and overseas affairs, Oleg Ogienko, spoke on stage.
References to A7A5 on TOKEN2049’s website had been removed and Ogienko was no longer listed as a speaker by 1300 GMT on Thursday, after Reuters sent a request for comment.
Hong Kong-registered TOKEN2049 did not reply to multiple requests for comment.
Ogienko confirmed that the A7A5 operation on the ground in Singapore was part of the group targeted by sanctions.
“We were sanctioned several times,” he told Reuters on the event’s sidelines on Thursday. He said A7A5 had nothing to do with money laundering and was compliant with regulations in Kyrgyzstan.
“We just regularly applied for our participation, and the organisers confirmed the participation (at TOKEN2049),” he said.
Trading volumes on A7A5 are soaring, and its presence in Singapore highlights the difficulty for Western countries that are trying to disrupt alleged use of crypto for sanctions evasion.
Neither Singapore nor Hong Kong has announced sanctions on companies connected to A7A5. The U.S. does not have jurisdiction if there are no U.S. persons involved, three lawyers specialising in sanctions told Reuters.
Sweeping Western sanctions since Russia’s February 2022 full-scale invasion of Ukraine, particularly the exclusion of Russian banks from the SWIFT global financial messaging system, have hampered Moscow’s trading options and left it seeking alternative routes for cross-border payments.
Some $70.8 billion of A7A5 has been traded since its launch in January, according to blockchain researchers Elliptic, up from $40 billion in July. The daily number of A7A5 transactions has doubled over the past month, Elliptic said. Reuters could not independently determine the source of funds in A7A5 or the reasons for the transfers.
The Office of Foreign Assets Control, the U.S. Treasury agency which issued the sanctions, and Britain’s finance ministry did not respond to requests for comment.
Russia-based Ogienko said A7A5 was used for cross-border payments by Russian companies and trade partners. Its target markets are Asia, Africa and Latin America, he added.
“There are many countries who trade with Russia, and some of them, many of them, use our stablecoin…and these are billions of dollars,” he said.
The Singapore gathering is one of the biggest in the crypto industry. Speakers included Donald Trump Jr; the chairman of U.S. brokerage Cantor Fitzgerald, Brandon Lutnick; and the heads of major crypto companies.
Spokespeople for Trump Jr and Cantor did not respond to requests for comment.
(Reporting by Rae Wee in Singapore and Elizabeth Howcroft in Paris; Additional reporting by Tom Wilson in London and Lucy Papachristou in Tbilisi; Editing by Tommy Reggiori Wilkes and Toby Chopra)
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