Russia, recently recognized as Europe’s leading adopter of cryptocurrency, is preparing to reshape its digital currency framework. Authorities are planning new regulations that would legalize the use of crypto in cross-border transactions while strengthening oversight of its circulation within the country. The initiative is designed to move past the current pilot framework by introducing clear laws that support legitimate crypto use and establish penalties for unlawful operations.
In brief
- •Russia is planning to allow cryptocurrency in international trade while keeping domestic oversight.
- •The Finance Ministry and the Central Bank of Russia emphasize that clear regulations are needed to manage the country’s growing crypto market.
Formalizing Cross-Border Cryptocurrency Transactions
Following a strategic meeting chaired by Prime Minister Mikhail Mishustin, both the Ministry of Finance and the Central Bank of Russia (CBR) have agreed to formalize the use of cryptocurrencies in international trade under enhanced state supervision.
Finance Minister Anton Siluanov noted the growing use of cryptocurrency in import payments and cross-border transfers. He explained that the Finance Ministry and the Central Bank have agreed on the need to establish a clear regulatory framework, with the Central Bank set to strengthen its supervisory role.
According to Siluanov, “we believe this area should be legalized, this area of activity should be regulated by law, and thus, together with Rosfinmonitoring and the regulatory agencies, we will be able to ensure and restore order in this sector.”
Russia Strengthens Oversight of Crypto Operations
On the enforcement front, Prosecutor General Alexander Gutsan announced that Russia is preparing new legislation to hold individuals accountable for managing digital currency activities that violate the law. Speaking at a session of the Coordinating Council of Prosecutors General of CIS countries, he said, “legislative amendments are currently being developed to establish liability for the illegal organization of digital currency circulation, the procedure for its confiscation, and the transfer of funds to the state.“
Gutsan noted that as the digital economy grows, regulating cryptocurrency is increasingly important. He added that the prosecutor’s office has helped create a framework to oversee mining, prevent money laundering, and track crypto transactions linked to criminal activity.
Diverging Views on Crypto Regulation
Despite the growing acceptance of crypto assets among Russian citizens, the Central Bank maintains a cautious position. It still does not recognize cryptocurrency as a legal payment method inside the country. The bank has proposed restrictions that would prohibit Russian residents from conducting crypto transactions with one another outside the established framework known as the ELR. Violations could lead to penalties, though the Bank has not clarified how existing holdings would be treated.
The Finance Ministry takes a more flexible approach. It supports gradual legalization that allows innovation to continue while bringing current activities under state supervision. Siluanov has acknowledged that the scale of crypto use in Russia is too large to ignore, making regulation a necessity rather than an option.
Bank of Russia Eyes Crypto Holdings and Lending
Meanwhile, in March 2025, the Central Bank estimated that Russian-linked exchange wallets held approximately 827 billion rubles. Bitcoin accounted for the largest portion at 62.1%, followed by Ethereum at 22%, while the stablecoins USDT and USDC together made up 15.9%.
As part of its supervisory responsibilities, the Bank of Russia plans to conduct a survey in early 2026 to assess investments in cryptocurrencies and loans to crypto-related companies. The survey will examine how much supervised organizations have invested in cryptocurrencies and the size of loans they have provided to crypto companies as of January 1, 2026, including investments made for risk-hedging purposes.