Latest news with #OsmanKabaloev
Yahoo
18-04-2025
- Business
- Yahoo
Russia Eyes National Stablecoin After $27M in USDT Frozen Over Sanctions Violation
Russian officials are reconsidering the country's reliance on foreign-issued stablecoins after wallets linked to the sanctioned crypto exchange Garantex were frozen. Osman Kabaloev, deputy director of the Finance Ministry's financial policy department, said the incident demonstrated the risks of using foreign stablecoins and reinforced the case for developing a Russian alternative. He suggested that a domestically issued stablecoin, potentially pegged to a currency other than the U.S. dollar, could help Russia avoid similar vulnerabilities in the future. Tether, a major stablecoin issuer, froze $27 million in USDT linked to Garantex on March 6. The action was part of a coordinated effort involving the U.S. Department of Justice, as well as authorities in Germany and Finland. U.S. officials said Garantex had facilitated more than $96 billion in illicit transactions since its founding in 2019. The exchange, which had already been under U.S. sanctions since 2022 for money laundering, was forced to suspend operations, including withdrawals. A blockchain analytics firm based in Switzerland reported that Garantex has re-emerged under a new name, transferring funds laundered in ruble-backed stablecoins to a different platform. The event has drawn attention to how stablecoins are being used for cross-border transactions in Russia, especially under Western sanctions. Before the freeze, stablecoins like USDT were widely used by Russian companies for international trade due to limited access to global financial systems. While the Central Bank of Russia remains opposed to crypto use within the domestic economy, its governor, Elvira Nabiullina, confirmed that crypto-based payments are being tested for international transactions under an experimental legal framework. These trials allow companies to bypass restrictions that have become more prominent since 2022. The government is now considering regulatory reforms, including amendments to the criminal procedure code that would formally recognize digital assets as property. In addition, Evgeny Masharov of the Russian Civic Chamber proposed creating a state-run crypto fund composed of digital assets seized in criminal investigations. This shift in strategy comes amid a broader global rise in stablecoin usage. A recent report by Artemis and Dune found that active stablecoin wallets have increased by over 50% in the past year. The stablecoin market cap has exceeded $200 billion in 2025, and annual transaction volume hit $27.6 trillion in 2024, surpassing that of Visa and Mastercard combined. Russian officials see these developments as both a challenge and an opportunity. The freezing of Garantex-linked assets has added urgency to discussions around building domestic tools for digital finance that can operate outside the control of foreign institutions. Sign in to access your portfolio
Reuters
16-04-2025
- Business
- Reuters
Russia should have own stablecoins, finance ministry official says
MOSCOW, April 16 (Reuters) - Russia should develop its own stablecoins pegged to other currencies after Russia-linked digital wallets holding the popular USDT stablecoin were blocked last month, a senior Finance Ministry official said on Wednesday. Dollar-pegged stablecoins, which are a type of cryptocurrency designed to maintain a constant value, have ballooned in recent years as they helped to move funds between different cryptocurrencies or into cash. Russian regulators have allowed the experimental use of cryptocurrencies in international payments, which have become more difficult due to Western sanctions. Before the blockage, USDT was popular among Russian firms as a payment tool. "The recent blockage makes us think that we need to consider creating internal tools similar to USDT, possibly pegged to other currencies," the deputy head of the ministry's financial policy department, Osman Kabaloev, said. Russian crypto exchange Garantex said on March 6 that USDT creator Tether had blocked digital wallets on its platform holding more than 2.5 billion roubles ($30.12 million), forcing it to suspend operations days after coming under EU sanctions. The head of Russia's central bank Elvira Nabiullina, who opposes the use of cryptocurrencies in domestic payments, said that Russian firms are actively testing international cryptocurrency payments as part of the experiment. ($1 = 82.9955 roubles)
