Catenaa, Thursday, May 22, 2025-Russia’s Central Bank is set to introduce new crypto regulations that experts say will effectively ban trading of Tether’s USDT stablecoin within the country.
The rules, which come into force May 26, target coins linked to “hostile” countries imposing sanctions on Russia, a classification that includes the US and its allies.
The regulations, issued ahead of expanded trading within the bank’s crypto sandbox, will restrict which cryptocurrencies investors can trade on approved platforms. While USDT trading appears to be prohibited, Russian firms may still use stablecoins like USDT for cross-border payments and settlements.
Experts say the rules cover most major USD-pegged stablecoins. Georgy Gukasyan, a legal expert formerly with Deloitte Russia, explained that Tether’s obligation to redeem USDT for dollars applies only to users passing strict Know-Your-Customer (KYC) and anti-money laundering checks, which comply with sanctions against Russia. This means Tether can block or freeze tokens at its discretion.
Mikhail Uspensky, part of Russia’s crypto regulation council, said USDT “does not meet the bank’s new criteria” and “will not circulate in Russia.” He added stablecoins remain usable for international trade.
The move follows a crackdown on Russian crypto firms such as the Garantex exchange, where U.S. authorities seized \$26 million and froze millions of USDT tokens, with Tether cooperating fully.
The Central Bank’s focus is on restricting tokens from “hostile issuers” and those vulnerable to sanction-related blocking or burning, tightening control over Russia’s crypto market amid ongoing geopolitical tensions.
