Russia introduces comprehensive cryptocurrency bill with provisions to ‘circumvent sanctions’

The Russian Duma passed a comprehensive draft law to regulate cryptocurrencies on its first reading, creating the country’s first formal framework for regulating digital assets while maintaining restrictions on domestic cryptocurrency payments.

For all reports in Local mediaThe legislation would classify cryptocurrency as property, allowing legal protection in court proceedings including bankruptcy and divorce cases. Unqualified investors will face Annual purchase limits worth 300,000 rubles (about $3,900), while professional participants will not face such restrictions.

Kaplan Panych, Deputy Chairman of the State Duma Committee on Budget and Taxation, noted that while the ruble remains the only legal settlement currency in Russia, the draft law creates an exception for the use of cryptocurrencies in foreign trade. “This allows Russian companies to use cryptocurrency to pay foreign counterparties, circumventing sanctions restrictions,” Panich said.

The Bank of Russia will serve as the licensing authority for cryptocurrency market participants under the proposed framework. The legislation is expected to enter into force on July 1, 2026, pending second and third readings in the Duma, approval by the Federation Council, and the signature of the President.

The bill’s provisions regarding cross-border cryptocurrency transactions could provide Russian companies with an alternative payment mechanism outside the traditional banking systems that Western countries have. restricted Since the Russian invasion of Ukraine. The legislation explicitly allows cryptocurrency settlements with foreign partners while maintaining a domestic payment ban, creating a regulatory path for international trade that circumvents traditional financial channels.

Tuesday’s Duma vote represents Russia’s most comprehensive attempt to formalize regulation of digital assets, balancing the integration of cryptocurrencies with state control over domestic monetary policy.

Russia and cryptocurrencies

Russia’s cryptocurrency landscape continues to evolve in the face of geopolitical turmoil sparked by its invasion of Ukraine, and the resulting sanctions imposed on the country.

Russia Forbidden Cryptocurrency payments in 2020 while allowing ownership of digital assets. Since then, the country has opened limited routes for institutional use and cross-border transactions amid Western sanctions following its invasion of Ukraine.

A September 2025 report from forensics firm Elliptic found that one of the Russia-linked networks was connected to At least $8 billion in stablecoin transactions over 18 months, specializing in “sanctions evasion as a service.”

By January, transactions took place in the ruble-pegged stablecoin A7A5 It exceeded 100 billion dollarswhile TRM Cryptocrime Report 2026 It found that A7A5 and its associated wallet network handled nearly $70 billion in sanctions-related flows in 2025.

In February, the European Union moved to Block all crypto transactions With entities based in Russia, in response to the relaunch of sanctioned Russian cryptocurrency providers under different names – as in the case of the closed Russian exchange Garantex, which It resurfaced last year as Grinex.

Earlier this month, Greenex has suspended trading After allegations that $13 million was exploited by what it called “Western special services.”