Russia’s Central Bank Moves to Shut Down Cash USDT Arbitrage

Russian banks are freezing transfers to Belarusian crypto platforms whenever a matching cash deposit appears beforehand. The Central Bank views the pattern as a way to legitimise funds whose origin is unclear.

The loop exploits the gap between bank and cash rates: money leaves Russia, buys USDT abroad, then returns as physical cash through local exchangers. Traders report margins above 2 % per round, with some handling hundreds of millions of roubles daily.

While the arbitrage itself remains legal for now, converting USDT directly into cash violates currency rules that require bank-channel settlements. Exchangers rarely supply paperwork strong enough for banks to lift the blocks.

From 1 July 2027 the entire route will be closed: new legislation bans direct purchases of USDT from CIS platforms via Russian banks and subsequent cash sales, along with person-to-person crypto transfers.

Based on information from cryptonews.net