In its initial reading, Russia’s State Duma has approved a detailed bill regulating cryptocurrencies for the first time, setting up the nation’s inaugural framework while keeping domestic crypto payments banned. According to local media, this legislation would treat cryptocurrency as property, thus ensuring legal protection in court cases such as bankruptcy and divorce. Non-professional investors would be subject to an annual purchase cap of 300,000 rubles (approximately $3,900), whereas professional participants would face no restrictions.
Kaplan Panesh, the deputy chairman of the State Duma Committee on Budget and Taxes, stated that although the ruble remains the sole legal payment method in Russia, the bill makes an exception for cryptocurrency use in international trade. “This permits Russian firms to settle payments with foreign entities via cryptocurrency, effectively sidestepping sanctions,” said Panesh.
Under this proposed framework, the Bank of Russia would act as the licensing body for crypto market participants. The legislation is slated to become effective on July 1, 2026, pending further readings in the State Duma and approvals from the Federation Council and the President.
These provisions aim to provide Russian companies with an alternative payment method outside traditional banking systems, which Western nations have restricted following Russia’s actions in Ukraine. The bill explicitly allows for cryptocurrency settlements with international partners while continuing to prohibit domestic payments, thus offering a regulatory means to bypass conventional financial channels for global trade.
This Tuesday’s approval by the State Duma marks Russia’s most extensive effort yet to regulate digital assets, balancing crypto integration with control over national monetary policy.
The evolution of Russia’s crypto environment continues amidst the geopolitical turmoil triggered by its invasion of Ukraine and subsequent Western sanctions. In 2020, Russia prohibited cryptocurrency payments while still allowing ownership of digital assets. Since then, it has carved out limited avenues for institutional use and international transactions under sanction conditions following the Ukraine conflict.
A September 2025 report from blockchain forensics firm Elliptic revealed that a network linked to Russia was involved in at least $8 billion worth of stablecoin transactions over eighteen months, focusing on “sanctions evasion as a service.”
By January, activity in the ruble-pegged stablecoin A7A5 exceeded $100 billion. The 2026 TRM Crypto Crime Report indicated that A7A5 and its related wallet network processed approximately $70 billion in sanction-related transactions during 2025.
In February, the EU banned all crypto dealings with Russian entities in response to sanctioned Russian crypto providers rebranding under new names—such as Garantex’s relaunch last year as Grinex. Recently, Grinex suspended trading after reporting a $13 million exploit it attributed to “Western special services.”