Russia Passes Comprehensive Cryptocurrency Law Legalizing Regulated Trading While Restricting Domestic Use

Russia's State Duma has passed a landmark cryptocurrency law, "On Digital Currency and Digital Rights," set to take effect on September 1, 2026. The framework, which awaits President Vladimir Putin's signature, legalizes regulated trading under Bank of Russia supervision while strictly banning domestic crypto payments to protect the ruble. Crucially, the law carves out an exception allowing Russian companies to settle international trade contracts in cryptocurrency, establishing a formal mechanism to bypass Western sanctions. Meanwhile, domestic retail investors face mandatory testing and a tight annual purchase cap of 300,000 rubles (about $3,800).

Russia cryptocurrency legalization framework

• ▪The cryptocurrency law requires approval from the Federation Council and the signature of President Vladimir Putin to become law.
• ▪The cryptocurrency law guarantees judicial protection for digital currency holders regardless of whether the assets were previously declared
• ▪The comprehensive cryptocurrency law is scheduled to have its primary provisions take effect on September 1, 2026.
• ▪Russia's State Duma passed draft law No. 1194918-8, titled "On Digital Currency and Digital Rights," in its second and third readings on July 21, 2026

Investor eligibility requirements

• ▪Qualified investors in Russia face no annual purchase limits and can access a wider range of cryptocurrencies through licensed providers
• ▪Retail and qualified investors in Russia must pass a mandatory knowledge or risk-awareness test to purchase cryptocurrencies through licensed intermediaries

Annual purchase limits

• ▪Non-qualified retail investors in Russia are capped at an annual cryptocurrency purchase limit of 300,000 rubles, equivalent to approximately $3,800
• ▪Non-qualified retail investors in Russia are subject to an annual limit of 100,000 rubles for transferring cryptocurrency abroad

Licensed exchange infrastructure

• ▪Russian banks are required to block transfers if they suspect an unauthorized entity is operating a cryptocurrency exchange.
• ▪Only organizations listed in a special registry of the Bank of Russia may operate cryptocurrency exchanges, with unregistered firms given a grace period until July 1, 2027, to comply
• ▪The Bank of Russia will license and supervise five categories of market participants, including exchanges, brokers, management companies, depositories, and exchangers.

Domestic payment prohibition

• ▪The Russian ruble remains the sole legal tender inside Russia, and the use of cryptocurrencies for domestic payments of goods and services remains prohibited
• ▪The cryptocurrency law bans banks and other entities from advertising or promoting cryptocurrency payments within Russia

Cross-border trade exceptions

• ▪The cross-border trade exceptions allow Russian companies to settle international contracts in cryptocurrency to bypass Western sanctions
• ▪The cryptocurrency law permits the use of digital currencies for settlements under foreign trade contracts between Russian residents and non-residents