The CIS Region Seeks Financial Breakthroughs Through Encryption Technology

At the end of March 2025, a small cryptocurrency exhibition will be held in Moscow. Although it is not large in scale, this exhibition has attracted attention from various sectors including government, industry, technology, and finance. In the current sanction environment, the CIS region is trying to find new development paths through stablecoins and blockchain technology.

Observations from the Moscow Crypto Summit

This exhibition involves multiple Chinese and Russian companies, with the agenda covering hot topics such as the prospects of the encryption market, regulatory policies, and BRICS digital assets. Although the scale of the exhibition is small, it is highly focused on the current state of the CIS blockchain industry.

• 40% are mining machine sellers, with Chinese manufacturers monopolizing the CIS mining market.
• 25% for encryption exchanges, including locally outstanding platforms
• 15% for cross-border payment and asset transfer service providers
• The rest are KOLs, media, and compliance service providers.

The entire exhibition highlighted the extreme localization and closed nature of the CIS market. However, the mining business is a major highlight, with the Russian side taking an inclusive attitude towards mining. Although the scale is small, the Russian authorities attach great importance to this exhibition, with officials from multiple departments participating and offering policy interpretations.

Interpretation of CIS Region Encryption Policies

Against the backdrop of current geopolitical tensions, Russia is gradually forming its own cryptocurrency policy path, with a focus on stablecoins and blockchain as the foundation, exploring solutions to bypass the Western financial system. Key policy signals include:

1. Incorporate encryption assets into the "de-dollarization" strategy and build local stablecoins.
2. Improve relevant laws and open special administrative regions to carry out regulatory sandbox pilots.
3. Strengthen cooperation with BRICS countries to develop a cross-border settlement framework anchored by multilateral agreements and currency recognition.

Overall, Russia is shifting from a defensive response to a strategic deployment, emphasizing the reconstruction of financial sovereignty through digital technology.

CIS Local Encryption Projects

A7A5 stablecoin

The A7A5, launched in February 2025, is a stablecoin pegged 1:1 to the ruble, designed to facilitate cross-border payments. Its main features include:

• Issued on Ethereum and Tron
• Liquidity is provided by deposits from Russian banks
• Built-in freezing and destruction features to ensure security
• Can generate passive income
• Already listed on some exchanges

A7A5 successfully responded to a certain exchange's USDT freezing incident, which is regarded as a "encryption market self-rescue case".

Kyrgyzstan Gold Stablecoin USDKG

Unlike the development of CBDCs, Kyrgyzstan has chosen to support the gold-backed stablecoin USDKG. Main advantages:

• Global Availability
• Blockchain Transparency
• The ability to maintain the value of gold
• Potential to attract foreign investment
• Transparent flow of funds

USDKG has passed a security audit and will officially launch soon. If successful, it could serve as a model for CBDC alternatives.

Russia's encryption regulatory framework

The current legal framework in Russia recognizes the legitimate status of digital financial assets, but there are still controversies regarding usage restrictions. Policy discussions show a clear divide:

• The law lags behind but practice has already begun.
• Regulation is undecided but companies have already taken action
• Policy recommendations focus on "classified regulation"

Russia plans to pilot encryption financial services in special administrative regions, exploring more flexible regulatory solutions. At the same time, the central bank proposed allowing "special qualified" investors to engage in cryptocurrency trading within a limited scope.

In terms of cross-border payments, Russia values cooperation with BRICS countries, promoting the multilateral mutual recognition of stablecoins and digital assets among nations, with the goal of constructing a regional financial network that does not rely on the US dollar. At the same time, businesses are also exploring ways to circumvent sanctions through private chain stablecoins.