Russian President Vladimir Putin has signed a landmark cryptocurrency law that, for the first time, establishes a comprehensive legal framework for regulated crypto trading in Russia, opening the market to retail investors while preserving the country's longstanding ban on using digital assets for domestic payments.

The legislation marks one of Russia's biggest policy shifts toward digital assets, transforming crypto from a largely gray-market activity into a regulated financial sector overseen by the Bank of Russia. Vladimir Putin

Russia opens the door to regulated crypto investing

Under the new framework, Russians will be able to buy and sell cryptocurrencies through licensed exchanges, brokers, custodians, trust managers and digital depositories operating under central bank supervision. While cryptocurrencies are formally recognized as tradable property, they remain prohibited as a means of payment or legal tender within Russia.

Retail investors will be limited to purchasing up to 300,000 rubles worth of approved "most liquid" cryptocurrencies per intermediary each year. The law does not specify which assets will qualify under that category.

Qualified investors, however, will face no investment limits. Both retail and professional investors must pass mandatory suitability assessments before accessing the market, while retail traders may qualify for unrestricted status based on their trading history.

The legislation also introduces licensing requirements for crypto businesses. Exchanges must join a government registry, maintain a minimum equity base of 15 million rubles and become members of a financial market self-regulatory organization before they can legally operate.

Although Russia is embracing regulated crypto investing, the government continues to prohibit digital assets from being used to pay for goods and services domestically.

However, the law explicitly permits cryptocurrencies to be used in cross-border settlements involving foreign trade contracts between Russian residents and overseas counterparties, reinforcing Moscow's broader effort to reduce reliance on Western financial infrastructure following international sanctions.

The measure builds on policies introduced in 2024 that allowed businesses to use cryptocurrencies in international trade as an alternative settlement mechanism.

Landmark reform comes alongside tighter oversight

Most provisions of the legislation will take effect on Sept. 1, 2026, officially launching Russia's regulated crypto market. Rules governing the issuance and circulation of certain digital assets will follow a year later on Sept. 1, 2027, while existing exchanges will have a transition period until March 1, 2027 to comply with the new licensing regime.

The law follows months of regulatory work by the Bank of Russia, which recently published draft rules for organized digital asset trading and requirements for licensed exchanges and digital depositories.

At the same time, Russian authorities continue tightening oversight of other parts of the crypto industry. Last month, the government prohibited cryptocurrency mining and participation in mining pools across Moscow, the surrounding Moscow region and parts of the Kursk region from Aug. 15 through the end of 2032, citing pressure on the country's electricity grid.

Together, the measures reflect Russia's evolving crypto strategy: bringing digital asset trading under direct government supervision while restricting activities that authorities view as posing financial or infrastructure risks.