Russia Warns Crypto Investors of Potential Losses Due to Foreign Stablecoin Issuers

Russia's Deputy Finance Minister Ivan Chebeskov issued a warning to cryptocurrency investors that they may bear losses if foreign stablecoin issuers freeze their assets. This is in line with Russia's new crypto market framework, which aims to regulate and expand access to cryptocurrencies.

The warning specifically concerns foreign-issued stablecoins such as Tether's USDT and Circle's USDC, whose issuers can restrict specific addresses under certain legal or regulatory circumstances. Chebeskov stated that Russian digital depositories would not automatically compensate investors for restrictions imposed by a foreign issuer.

The issue is significant given the size of Russia's crypto market. Chebeskov estimated that around 20 million Russians use cryptocurrencies, with combined holdings valued at approximately 3.7 trillion rubles (around $44 billion). He also noted that Russia's average daily crypto transaction volume is about 50 billion rubles, equivalent to nearly $600 million.