US Treasury Crypto Sanctions on Garantex, Grinex & A7A5
US Treasury Office of Foreign Assets Control (OFAC) don add more crypto sanctions to target di Russian-linked exchange Garantex, e successor Grinex, di ruble-backed A7A5 stablecoin and di affiliated entities plus executives dem. Garantex wey dem start for 2019 bin dey handle over $100 million for darknet and ransomware transactions before US, Germany and Finland authorities seize di domain and freeze $26 million for March. After Garantex close, Grinex come up, dey use Old Vector A7A5 wey Promsvyazbank and Moldovan politician Ilan Shor support to waka pass di sanctions. Blockchain analytics company Elliptic talk say A7A5 reach $1 billion daily volume by July, Chainalysis yarn say di total transactions na $51 billion. OFAC sanctions now dey include Old Vector, A7 LLC, A7 Agent, main executives Sergey Mendeleev, Aleksandr Mira Serda and Pavel Karavatsky, InDeFi Bank and Exved. This one cut off crypto channels wey people dey use do money laundering and dodging sanctions. Traders suppose dey watch dis increased regulatory scrutiny on stablecoins and exchanges make dem sabi say stricter crypto sanctions fit shift trading volumes and liquidity.
Bearish
These crypto sanctions dem for Garantex, Grinex and A7A5 Stablecoin na bearish for A7A5 self. For short term, when dem freeze di assets and sanction di key issuers and operators, e go shake market confidence, e fit make liquidity reduce and cause pressure wey fit make price drop from pegged value. Traders fit comot from A7A5 positions to avoid wahala with regulators, wey fit push price down below parity. For long term, continuous enforcement plus loss of access to US dollar rails go block A7A5 adoption, demand go shift to stablecoins wey dey more compliant and e go make market position of A7A5 even worse.