Russia Warns Crypto Investors Over Frozen Stablecoins Risk

Russia's Ministry of Finance is warning crypto investors that they will not be compensated if foreign stablecoin issuers, such as USDT or USDC, freeze their assets. According to Deputy Finance Minister Ivan Chebeskov, around 20 million Russians hold digital assets worth approximately 3.7 trillion rubles, or about $44 billion.

Chebeskov stated that the government will not cover losses resulting from freezes of foreign stablecoins, including when investors hold the tokens in private wallets. This means holding USDT and other stablecoins in a private wallet does not necessarily prevent the issuer from freezing the tokens.

The warning comes as Russia introduces a new framework for digital assets under Federal Law No. 282-FZ, signed on August 4 and effective from September 1, 2026. The law establishes rules covering crypto trading, digital asset intermediaries, and investor access, including annual purchase limits for non-qualified investors.