Putin Signs Landmark Law Establishing Comprehensive Regulatory Framework for Cryptocurrency in Russia

Russian President Vladimir Putin signed the landmark Law on Digital Currencies and Digital Rights on August 4, 2026, establishing Russia's first comprehensive crypto framework. Taking effect on September 1, 2026, the law bans domestic crypto payments but permits cryptocurrency for cross-border trade settlements to counter Western sanctions. Retail investors face a 300,000-ruble annual purchase limit and mandatory testing, while exchanges must hold 15 million rubles in equity and register by July 2027.

Putin signs digital currency law

• ▪Russian President Vladimir Putin signed the Law on Digital Currencies and Digital Rights on August 4, 2026, establishing Russia's first comprehensive regulatory framework for digital assets.
• ▪The Law on Digital Currencies and Digital Rights is scheduled to enter into force on September 1, 2026, with certain provisions delayed until 2027.

Cryptocurrency regulatory framework

• ▪The Law on Digital Currencies and Digital Rights maintains a strict ban on using cryptocurrency to pay for goods and services inside Russia, as well as advertising crypto as a domestic payment method.
• ▪The Law on Digital Currencies and Digital Rights permits cryptocurrency use for settlements under foreign trade contracts between Russian residents and non-residents to facilitate cross-border trade.

Investor access restrictions

• ▪Qualified investors in Russia face no purchase limits on cryptocurrencies, but both retail and qualified investors must pass mandatory suitability testing.
• ▪Non-qualified retail investors in Russia are limited to purchasing a maximum of 300,000 rubles, approximately $3,700 to $3,800, of approved cryptocurrency per year through a single licensed intermediary.

Licensed intermediaries

• ▪Crypto exchange operators in Russia must register with a dedicated registry, hold a minimum equity capital of 15 million rubles, and join a financial market self-regulatory organization.
• ▪Existing crypto exchange operators and digital depositories in Russia are granted a grace period allowing them to operate without registration until July 1, 2027.

Custodial service providers

• ▪New digital depositories supervised by the Central Bank of Russia will record cryptocurrency ownership, with minimum capital requirements ranging between 50 million and 250 million rubles.
• ▪Only custodial wallets opened with authorized institutions can be used to receive, store, and send digital money inside the Russian Federation.

Transaction monitoring requirements

• ▪Russian banks are authorized and required to block transactions if they suspect unauthorized or illegal crypto exchange activity.
• ▪A 48-hour cooling-off rule will apply to transfers between cryptocurrency wallets and from cryptocurrency wallets to fiat accounts in Russia.