The Central Bank of Russia is gearing up to launch a regulated cryptocurrency testing framework on May 26. This significant move will notably influence the country’s favored altcoin, Tether’s USDT. This new framework specifies that only altcoins from “friendly nations” and those that cannot be frozen unilaterally by their issuers will gain approval. Tether, with its ability to block wallets and halt redemptions, does not qualify under these criteria. Though no formal ban exists, there are signs that local traders will soon find access to USDT significantly restricted.
What Lies Ahead for USDT Under Russia’s Regulations?
Under the new directives, any altcoins that fail to meet the “unblockable” standard are deemed risky. While Tether is not explicitly named, its recent actions against wallets associated with Russian exchange Garantex highlight its non-compliance. Mihail Uspenskiy, a legal expert, emphasized, “Assets complying with US sanctions are automatically ruled out,” suggesting potential cuts in Russian ruble-USDT trading access amid license renewals for crypto platforms.
Will Cross-Border Transactions Change?
USDT, however, remains an option for international trade if the counterpart permits its use. Russia’s sandbox initiative grants approval for stablecoin deployments in cross-border deals, aiming to connect exporters with the international market outside the Russian ruble. Additionally, the DFA framework using gold-supported altcoins and available to foreign firms highlights Russia’s intent to expand global financial ties.
Another pilot explores direct crypto payments in trade. Initial transactions began last December, and as Russia tests these initiatives, projects like the digital ruble and the “BRICS Bridge” digital currency are also advancing. Moscow aims to bypass sanctions by leveraging blockchain solutions for swift transaction reconciliation.
Industry experts believe short-term export payments might still occur using USDT but warn that reduced local trades could drain market liquidity. Consequences may include increased spreads and trading costs for individual traders, effectively making operations difficult without an outright ban.
- Russia’s crypto guidelines could sharply limit USDT access for local investors.
- These measures reflect a calculated alignment against US sanctions compliance.
- Efforts continue to maintain USDT’s role in cross-border transactions for international trade.
- Digital advancements like the “BRICS Bridge” signify Russia’s strategic economic diversification.
Overall, Russia’s evolving regulatory landscape seeks to balance domestic interests with international trade freedom, challenging Tether’s presence while pursuing its ambitious digital currency projects. This strategic shift underscores an ongoing effort to fortify the nation’s financial ecosystem against external pressures.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.
Source: https://en.bitcoinhaber.net/russias-new-crypto-move-targets-tether