New crypto rules may ban Tether trading in Russia
Only stablecoins not linked to ‘hostile issuers’ or prone to blocking will be allowed to trade.
Russia’s new Central Bank regulations could effectively ban the trading of Tether (USDT) within the country’s crypto sandbox, experts have said. The rules, effective 26 May, target coins linked to ‘hostile issuers’ or at risk of being blocked or frozen.
The crypto sandbox, supervised by the Central Bank, allows Russian firms to use digital assets in international trade. Plans to expand the sandbox will let qualified investors trade on approved platforms, but only coins meeting strict criteria will be permitted.
While USDT trading appears under threat, stablecoins may still be used for cross-border payments and settlements.
Experts note that the rules’ broad definitions mean popular USD-pegged stablecoins, including Tether, likely will not comply. Tether’s requirements for Know-Your-Customer (KYC) checks enable it to block or freeze tokens at its discretion.
Such controls have already been seen in actions against Russian exchanges, highlighting potential complications for Russian crypto users.
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