Russia considers own stablecoin as $27 million freeze prompts review

A senior official from Russia’s Finance Ministry has suggested that the country should develop its own stablecoin, following recent actions by US authorities and stablecoin issuer Tether (CRYPTO:USDT) that resulted in the freezing of $27 million linked to the sanctioned Russian crypto exchange Garantex.

Osman Kabaloev, deputy head of the ministry’s financial policy department, stated that the Kremlin is now considering “the need to develop internal instruments akin to USDT, potentially pegged to other currencies,” according to reports from Reuters and TASS.

“We do not impose restrictions on the use of stablecoins within the experimental legal regime. Recent developments have shown that this instrument can pose risks for us,” Kabaloev explained.

The freeze on Garantex occurred after the US Department of Justice, working with German and Finnish authorities, targeted domains associated with the exchange, which was accused of processing over $96 billion in criminal proceeds since 2019.

Tether’s action to freeze $27 million in USDT forced Garantex to halt all operations, including withdrawals.

The US Treasury’s Office of Foreign Assets Control had previously sanctioned Garantex in April 2022 over alleged money laundering violations.

Reports indicate that Garantex has since attempted to resurface under a new name, allegedly transferring millions in ruble-backed stablecoins to a newly established exchange.

In response to these developments, Russia’s Ministry of Finance has been advancing plans to regulate cryptocurrency transactions within a controlled national framework.

This approach, currently operating under an experimental legal system, allows regulators to monitor and manage crypto activities, with participation limited to investors who meet defined wealth criteria.

The ministry has also discussed the possibility of a state-run crypto reserve as part of its oversight efforts.

Meanwhile, Russia is set to implement new tax regulations in 2025, treating digital currencies as property and imposing a 13% personal income tax on crypto earnings up to 2.4 million rubles, and 15% on higher amounts.

Mining companies will face a 25% corporate tax, and monthly reporting will be mandatory for miners.

These measures come as the global stablecoin market capitalisation has surpassed $200 billion in early 2025, with active stablecoin wallets increasing by more than 50% in one year, according to joint reports from Artemis and Dune.