The Russian State Duma passed a comprehensive cryptocurrency regulation bill in its first reading, establishing the country's first formal digital asset regulatory framework while maintaining restrictions on domestic cryptocurrency payments.
According to the report, local media the bill classifies cryptocurrencies as property, making them legally protected in court proceedings, including bankruptcy and divorce cases. Non-accredited investors will be subject to annual purchase limits, requiring participants to pay 300,000 rubles (approximately $3,900), while professional participants will not be subject to such restrictions.
Kaplan Panesh, Vice Chair of the State Duma’s Budget and Tax Committee, noted that although the ruble remains Russia’s sole legal tender, the bill creates an exception for the use of cryptocurrencies in foreign trade. “This allows Russian companies to pay foreign counterparties using cryptocurrencies, thereby circumventing sanctions restrictions,” Panesh said.
Under the proposed framework, the Central Bank of Russia will act as the licensing authority for participants in the cryptocurrency market. The bill is expected to take effect on July 1, 2026, subject to second and third readings in the State Duma, approval by the Federation Council, and presidential signature.
The provisions in the bill regarding cross-border cryptocurrency transactions may provide Russian companies with an alternative payment mechanism outside the traditional Western banking system. Restricted Since Russia’s invasion of Ukraine, the legislation has explicitly permitted cryptocurrency settlements with foreign partners while maintaining a ban on domestic payments, thereby establishing a regulatory pathway for international trade that bypasses traditional financial channels.
Tuesday's State Duma vote represents Russia's most comprehensive effort to formalize digital asset regulation, aiming to balance cryptocurrency integration with state control over domestic monetary policy.
Russia and cryptocurrency
Amid the geopolitical upheaval caused by Russia's invasion of Ukraine and the resulting sanctions imposed on the country, Russia's cryptocurrency landscape continues to evolve.
In 2020, Russia prohibited cryptocurrency payments and the holding of digital assets. Since then, following the invasion of Ukraine and due to Western sanctions, the country has opened limited channels allowing institutions to use cryptocurrency and conduct cross-border transactions.
The blockchain forensics firm Elliptic found in a report released in September 2025 that a network linked to Russia was involved in stablecoin transactions, offering “sanctions evasion as a service,” and moved at least $8 billion over 18 months.
By January, the volume of transactions for the ruble-pegged stablecoin A7A5 had reached… over $100 billion, while the 2026 TRM Cryptocurrency Crime Report found that A7A5 and its associated wallet network processed approximately $70 billion in sanctioned-related fund flows in 2025.
In February, the European Union took action to ban all cryptocurrency transactions with sanctioned Russian cryptocurrency providers that relaunched under different names (such as the closed Russian exchange Garantex), and we partnered with entities based in Russia. They reappeared last year under the name Grinex.
At the beginning of this month, Grinex ceased trading following allegations of a $13 million scam by so-called "Western intelligence agencies."