The sanctions imposed against the issuer of the ruble stablecoin A7A5, the Kyrgyz company Old Vector, have buried the cryptocurrency.
In August, the U.S. government blacklisted the Russian exchange Grinex, the company Old Vector, owners of the closed trading platform Garantex, and several payment services. The British authorities, in turn, imposed restrictions on the exchanges Grinex and Meer, Old Vector, the Kyrgyz bank Capital Bank, and the leaders of these organizations.
After the sanctions against Old Vector A7A5, which should be worth ₽1, it noticeably dropped in price. Initially, its price fell to ₽0.85, and on August 21, the coin's rate suddenly collapsed to ₽0.018, but then it corrected and now stands at ₽0.71, which is 29% lower than the required level. It is evident that the pressure from the U.S. and the U.K. has had an effect.
Price drop of A7A5
The President of Kyrgyzstan, Sadyr Japarov, condemned the actions of Western officials, noting that they did not provide evidence indicating that Kyrgyz companies helped circumvent sanctions against the Russian Federation. In particular, it was alleged that Russians evaded restrictions by using the banking services of Capital Bank and Keremet Bank, but this was not confirmed by facts.
Today, 21 banks operate in Kyrgyzstan. To eliminate the risk of them being added to the sanctions list, we decided to allow only the state-owned bank Keremet Bank to work with the ruble. All operations will be conducted under government control, and profits will be transferred directly to the country's budget, Japarov stated.