Russia, which faced major sanctions after the invasion of Ukraine, turned to Bitcoin (BTC) and cryptocurrencies to overcome these sanctions. At this point, Russia is tightening its control over the crypto sector, even as it begins to use Bitcoin and cryptocurrencies in international payments. According to Bloomberg, the Central Bank of Russia’s digital asset regulations, which are expected to come into effect next week, May 26, are expected to seriously affect Tether (USDT) trading within the country and impose restrictions on USDT access. The new digital asset regulations reportedly include: “a ban on digital assets issued by unfriendly countries, only allowing digital assets from friendly countries, and a ban on tokens that can be blocked or taken by issuers or payment agents.” At this point, it is thought that Russian companies can continue to use stablecoins such as USDT for cross-border payments, but the use of USDT in local payments is too risky and restrictions may be imposed. Experts even state that the use of USDT may be banned in Russia due to new regulations. “Tether may be banned for use within Russia, as it does not meet the requirements of Russia's new digital asset regulations. However, stablecoins are not prohibited for use in international payments,” said Mikhail Uspensky, a member of the Russian Virtual Asset Regulatory Committee. *This is not investment advice.