Russia May Ban USDT Under Incoming Crypto Rules

Starting May 26, Russia will roll out new digital asset regulations that could heavily impact Tether (USDT) use inside the country.

May 26, 2024 — Starting May 26, Russia will be rolling out new digital asset regulations that may 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

The 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.

This could have significant implications for the cryptocurrency ecosystem in Russia as the country integrates digital assets into its financial system.

If Tether is indeed banned, it may create difficulties for Russian entities engaged in cross-border cryptocurrency transactions, potentially prompting them to seek out alternative stablecoins or payment methods for global operations.