Russia Signs Landmark Crypto Regulation Law Amid Global Tensions

Russia has passed its first comprehensive crypto regulation framework, signed into law by President Vladimir Putin on August 4. The 'Digital Currency and Digital Rights Law' takes effect in phases, with most provisions kicking in on September 1, 2026.

The new regulations ban the use of cryptocurrencies as domestic legal tender but allow their use in international trade and cross-border settlements to circumvent Western sanctions. This move is seen as a way for Russia to maintain economic independence amidst global tensions.

Crypto users are divided into two categories: retail investors with an annual limit of 300,000 rubles ($3,750) on purchases, restricted to trading highly liquid assets like Bitcoin, Ethereum, and Tether through licensed intermediaries; and professional investors who face no limits but must pass a knowledge assessment.

Crypto service providers, including exchanges, brokers, and digital depositories, must register with the Central Bank by July 1, 2027. Licensed operators are required to maintain a minimum equity of 15 million rubles ($187,000) and join a self-regulatory organization (SRO). Commercial banks can now block or freeze funds related to unauthorized crypto entities.

Crypto mining has been recognized as a legitimate economic activity in Russia. Mining companies must register with the authorities, while individuals are free to mine without registration if their household electricity consumption does not exceed government-issued caps.