Russia’s new rules exclude USDT from domestic use due to sanctions risks. 
Cross-border crypto transactions, including USDT, remain legal for international trade.

The Central Bank of Russia has banned the use of Tether’s USDT in the country because of fears about sanctions and asset freezes. But, users can leverage cryptocurrencies such as USDT, for overseas payments, showing the bank is moving towards using alternative forms of payment.

New regulations which will be in place before May 26, are designed to help Russian businesses trade internationally and control how crypto is used in the country. Through the sandbox, firms can experiment with crypto in global trade, though they can only use the permitted tokens.

Recent reports have indicated that the dominance of USDT in Russia is on the decline. The Central Bank now forbids using USDT within the country and is concentrating its efforts on “friendly” alternative coins and non-frozen issuers. The plan is meant to reduce Russia’s vulnerability to sanctions and increase its financial independence.

Georgy Gukasyan claims that Russian holders of Tether are unable to access their assets due to the cryptocurrency’s compliance with U.S. sanctions.Gukasyan added that while USDT can’t be used for domestic payments, using it for cross-border transactions will still be authorised by the sandbox.

The new rules are a shift from Russia’s previous policy, as they had called for a total ban all the way until 2022. Currently, the country is creating a legal structure for crypto mining, international transactions and it remains a leading country for crypto use worldwide. Because blanket bans are ineffective, they often make people resort to ways that aren’t regulated.

Crypto Pivot: Russia Embraces Blockchain for Trade, But Curbs USDT

This change shows that Russia is adopting a different strategy for cross-border settlements. Encouraging transactions with nations on good terms and non-sanctioned companies is meant to safeguard financial activities from outside influence. This method is appropriate given that Russia is constantly trying to go around the effects of sanctions on its international trade.

With the changes in Russia’s regulations, USDT trading in the country may be greatly influenced. While there are challenges for domestic crypto investors, allowing crypto use abroad suggests a sensible way to integrate cryptocurrencies. Many markets are closely following this change since it could influence the actions of other countries with similar rules.

Restricting USDT in Russia is likely to impact the crypto market worldwide. Any changes in regulation in Russia could have an effect on how trading and investing take place globally. Emphasizing alternative stablecoins and CBDCs could inspire new ideas and technologies in the crypto world, meeting the needs of individual countries.

Experts suggest that while USDT’s role in Russia diminishes, the demand for other stablecoins and digital assets could rise. This shift might lead to increased competition among crypto issuers and a diversification of the market.

The post Russia Tightens Grip on USDT, Permits Cross-Border Crypto Use appeared first on Live Bitcoin News.

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Filed under: Bitcoin - @ May 19, 2025 6:12 pm