Russia Implements Strict Rules for Foreign Stablecoins

Russia’s Central Bank introduces regulations affecting foreign stablecoins, notably impacting Tether, from May 26.

The exclusion aims to reinforce Russia’s digital asset independence, affecting cross-border payment flexibility and domestic trading volumes.

Russia Excludes US Stablecoins due to Blocking Features

The Central Bank of Russia has set rules that prohibit foreign stablecoins with blocking features. Kristina Aleshina highlighted these at the Saint Petersburg forum. Entities involved include the Central Bank of Russia and major players like Tether, now restricted from local circulation due to their freeze capability. Kristina Aleshina, Deputy Director, Bank of Russia, stated, “The funds raised through DFAs have reached a total of 800 billion rubles (more than $9.9 billion) by the end of Q1 of 2025.”

Tether’s USDT Faces Trading Ban in Russia

The regulation primarily affects USDT, halting its domestic trading in Russia. Local digital financial assets anticipate a boost. Financial shifts include migration to non-custodial channels and possible delisting of USDT pairs by Russian exchanges, affecting trading volumes. Mikhail Uspensky, Member, Russia’s Crypto Regulation Expert Council, noted, “Any asset capable of complying with US sanctions is automatically eliminated.”

Garantex Incident: A Precedent for Current Regulations

This mirrors the Garantex incident, where Tether froze $26M due to US actions. Past compliance indicates similar future constraints. Experts predict a decline in centralized stablecoin use in Russia, with local alternatives potentially filling liquidity gaps. Georgy Gukasyan, Legal Director, DRT, commented, “USDT is theoretically not banned, but all technical criteria effectively close the door on it.”