Russia Introduces Landmark Cryptocurrency Law, Establishing New Rules for Digital Assets

Russian President Vladimir Putin has signed the country's first comprehensive law regulating digital currencies and digital rights, creating a legal framework for cryptocurrency trading, custody, and investment. The legislation, which takes effect on September 1, 2026, marks the most significant overhaul of Russia's digital asset market to date.

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Cryptocurrency wallet (physical) and Bitcoin coin

The law was approved by the State Duma on July 21 and endorsed by the Federation Council three days later before receiving the president's signature.

New Rules Establish Regulated Crypto Market

The legislation sets out the legal framework for cryptocurrency trading in Russia while expanding existing rules governing digital financial assets (DFAs).

Under the new system, cryptocurrency transactions will take place through licensed exchanges, while a new category of financial institutions-digital depositories-will provide custody, record-keeping, and settlement services. Existing depositories may obtain digital depository status if they meet software, cybersecurity, and regulatory requirements and are entered into the Central Bank's official register.

Licensed brokers and asset management companies will act as intermediaries between exchanges and investors. They will also be allowed to connect Russian clients with foreign cryptocurrency infrastructure.

The law also legalizes cryptocurrency exchange services. Licensed crypto exchangers will be permitted to convert non-cash fiat currency into digital assets and back, provided they meet registration and capital requirements.

Cryptocurrency Remains Primarily an Investment Asset

The legislation limits the use of cryptocurrencies as a means of payment inside Russia. For most market participants, digital currencies may serve only as investment assets, while payments in cryptocurrency remain prohibited.

The main exception applies to companies engaged in foreign trade, which will be allowed to use cryptocurrency to pay for goods and services. Licensed crypto exchangers will also be permitted to use digital assets in transactions involving securities and digital rights.

Only cryptocurrencies that meet regulatory standards for market capitalization, liquidity, and pricing history will qualify for trading on Russian exchanges. According to Central Bank First Deputy Governor Vladimir Chistyukhin, Bitcoin, Ethereum, and the stablecoin USDT currently satisfy those criteria.

Retail investors will be required to pass a suitability test before investing. The Central Bank also plans to impose investment limits for non-qualified investors, previously indicating a threshold of 300,000 rubles per individual.

The law permits cryptocurrency storage and transactions only through custodial wallets, where private keys are managed by licensed exchanges or service providers. Self-custodied "cold wallets" will generally remain available only to participants engaged in foreign economic activity, although no restrictions apply to their use outside Russia.

The Central Bank has stated that the exchange of cryptocurrencies and stablecoins for Russian securities through licensed brokers and exchangers will operate under a mechanism similar to conventional securities transactions, with settlements handled through traditional and digital depositories.

Separately, the Russian government will introduce restrictions on cryptocurrency mining in several regions, including Moscow, the Moscow Region, and parts of the Kursk Region beginning August 15. Officials say the measure aims to reduce electricity consumption, with authorities estimating that cryptocurrency mining currently uses around one gigawatt of power in the Moscow metropolitan area.

Russia previously adopted legislation regulating cryptocurrency mining in 2024, requiring legal entities and individual entrepreneurs engaged in mining to register with the Federal Tax Service.