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

[Ben Graham]

On 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.

Is Europe finally waking up to stablecoins, just as Concordium’s long game starts to pay off?

Tomorrow, Eurozone finance ministers will meet to discuss how to accelerate the development of euro-denominated stablecoins.

The global stablecoin market is now close to 300 billion… pic.twitter.com/mh0C4yRtOr

— David Mygind (@davidmygind) October 8, 2025

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EU Sanctions A7A5 Stablecoin To Block Russian Crypto Flow Into Europe 

The 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.

EU has proposed imposing sanctions on A7A5, a ruble-backed stablecoin tied to sanctioned Russian actors, – Bloomberg

The sanctions will prohibit any engagement by EU-based entities in transactions involving the token and target several banks for enabling crypto-related… pic.twitter.com/lDmRpN522f

— Beefeater (@Beefeater_Fella) October 6, 2025

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

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?  Will the euro-backed stablecoin reduce Europe’s reliance on US dollar-denominated stablecoins?

On 25 September 2025, ING released the joint statement confirming that “the initiative will provide a real European alternative to the US-dominated stablecoin market, contributing to Europe’s strategic autonomy in payments.”

According to the banking giants, the stablecoin will provide near-instant, low-cost payments and settlements. Furthermore, it will enable 24/7 access to efficient cross-border payments, programmable payments, and improvements in supply chain management and digital asset settlements, which can vary from securities to cryptocurrencies.

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Key Takeaways

The targeting of the A7A5 stablecoin signals a continued commitment by the EU and its allies to close loopholes in sanctions enforcement created by the rapid innovation in cryptocurrency markets.

The creation and issuance of A7A5 resulted from previous sanctions targeting Russian crypto exchanges like Garantex, which played a role in facilitating these ruble-to-crypto routes. 

The post EU Finance Ministers Meet Tomorrow To Discuss Euro Stablecoin Issuance: Why Is EU Sanctioning A7A5 Stablecoin? appeared first on 99Bitcoins.