Russia Flags Crypto, Stablecoins as Financial Market Risk

The Bank of Russia has identified cryptocurrency use as a financial market risk, warning that stablecoins and other digital assets could increasingly be used by Russians as substitutes for the national currency.

The regulator said increased use of digital currencies, particularly stablecoins, could lead households to use privately issued assets in place of the ruble. Investments in cryptocurrencies carry the possibility of a complete loss of invested funds, according to the central bank.

The Bank of Russia has warned that unlicensed crypto operators could face criminal liability, while regulated firms that break market rules could face administrative penalties.