Russia Shifts Stablecoin Freeze Risks to Investors Under New Crypto Rules

Russia has shifted the risks of freezing foreign stablecoins onto investors, according to new crypto rules that expand reporting and oversight. Deputy Finance Minister Ivan Chebeskov said Russia estimates about 20 million crypto users hold RUB 3.7 trillion ($44 billion) in cryptocurrency and related products.

The country's new legislation imposes penalties on investors for freezing foreign stablecoins like USDT or USDC, which can become unstable and result in investors losing their assets. This means that Russian depositories will no longer automatically pay investors if a foreign issuer blocks an asset.

Chebeskov noted that the regulatory approach was developed over 10 years of discussions, starting with a prohibition policy and progressing to some regulation and experimental policies. The new rules also reduce the proposed capital requirement for independent crypto exchanges from RUB 30 million to RUB 15 million.