Starting May 26, Russia will roll out new digital asset regulations that could heavily impact Tether (USDT) use inside the country.
According to the information Central Bank of Russia’s rules will restrict access to certain tokens, including USDT, due to its foreign origin and issuer control.
The regulations ban digital assets from “unfriendly” countries. Only tokens issued in “friendly” countries will be allowed. In addition, tokens that can be frozen or seized by the issuer or payment agent will not pass the new test.
Cross-Border Use Still Allowed, Domestic Use at Risk
Russian firms may still use USDT for cross-border payments. However, using it for local transactions now carries legal risk. Many experts believe the new rules could effectively outlaw Tether inside Russia for domestic use.
Mikhail Uspensky, a member of Russia’s Virtual Asset Regulatory Committee, said, “Tether may be banned for use within Russia, as it does not meet the requirements of Russia’s new digital asset regulations. However, stablecoins are not prohibited for use in international payments.”
A Broader Crackdown on Foreign Stablecoins
This move signals Russia’s effort to limit the influence of Western-controlled financial tools. The ban on assets from “unfriendly” nations and those vulnerable to foreign seizure aims to boost national digital security.
If the ban takes full effect, Russian crypto users and businesses could be forced to shift away from widely used stablecoins like USDT in favor of alternatives approved by regulators.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/russia-may-ban-usdt-under-incoming-crypto-rules/