# Russian Banks Block Transfers Linked to USDT Cash Arbitrage

By Riza Dagoc

Canonical URL: https://www.tokenpost.com/news/regulation/35398
Published: 2026-10-20T07:08:54.000Z
Updated: 2026-10-20T07:08:54.000Z
Section: Regulation

> Some payments to Belarusian crypto exchanges are being stopped after customers deposit cash. A separate rule will end direct person-to-person crypto trading on July 1, 2027.

Russian banks have begun blocking some transfers tied to cross-border Tether (USDT) arbitrage, targeting a route that turns crypto bought abroad into cash in Russia ahead of tighter trading rules in 2027.

The trade starts with a USDT purchase on an exchange in Belarus or another former Soviet state. The tokens are then sold for cash through exchange services in Russia, with traders seeking to profit from the difference between cash and bank-transfer exchange rates. Some banks are stopping transfers to Belarusian crypto exchanges after customers deposit cash.

The Bank of Russia, the country’s central bank, views the pattern as a potential way to launder funds of unclear origin. The current payment blocks concern money moving into that trade. They are separate from a rule governing direct crypto transactions between individuals, which has a later start date.

Under Russia’s digital-asset law, individuals will no longer be permitted to trade crypto directly with one another from July 1, 2027. Those transactions will have to go through regulated service providers.