The A7A5 stablecoin, pegged to the Russian ruble, has lost its peg after the U.S. and U.K. governments imposed new sanctions. The stablecoin, issued by a Kyrgyzstan-registered entity, dropped by as much as 13% following the announcement of the sanctions.

The sanctions target individuals and entities linked to the stablecoin, which authorities believe are helping Russia evade international sanctions. This event highlights the growing scrutiny of stablecoins and other digital assets by Western governments and their efforts to close down any potential channels for sanctions evasion.