In an atmosphere as thick as a Moscow winter, the Russian government is tightening its grip on the crypto sector. New regulations from the Central Bank may spell the end of USDT trading in Russia. While Russian companies can still use stablecoins like Tether for international deals, the dream of local investors cashing in on USDT might soon vanish like a puff of cigarette smoke in Red Square.
No Ban, But Trouble is Brewing for USDT
After freezing USDT wallets last month, the Central Bank of Russia is rolling out fresh rules, just in time for its crypto sandbox to open on May 26. The sandbox aims to encourage crypto usage in global trade—but only if it doesn’t make the Kremlin too nervous. These regulations avoid naming names, but everyone’s reading between the lines and pointing a finger at USDT. Experts suspect the new rules are crafted to give Tether—and its USD-backed buddies—the cold shoulder.
Under the new plan, only tokens from “friendly countries” are allowed. That means if you’ve been naughty and sanctioned Russia, you can forget it. The real kicker? The rules aim to block coins that can be “blocked.” Translation: Tether, which can freeze wallets and refuse redemptions. Not exactly what you’d call “user-friendly” for Russian crypto holders.
A meeting between Russian President Vladimir Putin and Ukrainian counterpart Volodymyr Zelenskiy could take place if the two sides come to certain agreements, Interfax reported.
— Bloomberg (@business) May 17, 2025
Experts Think USDT’s Russian Days Are Numbered
Crypto regulatory expert Mikhail Uspensky confirmed that USDT likely won’t meet the new requirements, essentially kicking it out of the domestic market. Legal eagle Georgy Gukasyan took it a step further, pointing out that Tether’s close relationship with U.S. sanctions means it can freeze assets at will. Not exactly ideal for Russian investors looking to hold onto their stablecoins with peace of mind.
Stablecoin Use Abroad Still Open…For Now
Despite these new restrictions, USDT will likely remain useful for cross-border transactions. But for Russian traders, the writing is on the wall. USDT may be on the way out, with only the elite international traders getting a pass. After all, the sandbox is about global trade—not keeping your local crypto dreams alive.
With Tether already cozying up to U.S. authorities, freezing wallets linked to the Russian exchange Garantex, it’s no wonder Russian confidence in USDT is slipping faster than a Siberian sleigh ride.
- Also Read:
- GENIUS Act Vote on May 19: Will the U.S. Finally Regulate Stablecoins?
- More to come…
Other Ways to Get Your Crypto Fix
Russia isn’t totally cutting itself off from the digital asset world. Two pilot programs for cross-border payments are underway. One involves tokenized gold assets under Russia’s DFA regime—though foreigners might have trouble getting in on the action. The second pilot lets Russia pay for imports and exports with crypto, showing that the Central Bank isn’t all about freezing things out. The digital ruble is also on the horizon, plus the BRICS Bridge—Russia’s solution for cross-border payments using local currencies.
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FAQs
Is crypto allowed in Russia?
Yes, crypto is legal in Russia—just don’t think you can buy your groceries with it. It’s for investment and cross-border transactions only.
What is the Russian currency crypto?
Russia’s official crypto is the digital ruble, a central bank digital currency (CBDC) that’s still under development and testing.
Is crypto taxed in Russia?
Yes, Russia taxes crypto profits. If you’ve made some sweet gains, don’t forget to declare it and pay your fair share.
How much tax will I pay on crypto in Russia?
Crypto profits are taxed at a 13% rate for residents and 15% for high earners or non-residents. Not bad, considering some places would take half.
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2025-05-19 08:41