Market News

Russia’s Central Bank Shifts to Embrace Cryptocurrency Regulations by 2026

Russia's central bank has revealed a significant framework intended to regulate cryptocurrency trading by July 1, 2026, reflecting a notable shift towards a more accommodating stance on digital assets.

This proposed regulatory framework allows both individuals and institutions to engage in cryptocurrency trading, marking a departure from the previous outright ban on such activities.

Non-qualified investors will be limited to purchasing approved cryptocurrencies worth up to 300,000 rubles annually, after passing a risk-awareness test, while qualified investors can trade unrestricted but without anonymous tokens.

Despite these advancements, the central bank underscores that cryptocurrencies should not be used for domestic payments, consistent with previous regulations established in 2020.

The move is a response to the growing prevalence of cryptocurrency within Russia, with millions of citizens reportedly participating in the market.

Additionally, provisions will be implemented to penalize illegal activities related to cryptocurrencies by July 1, 2027, aligning with regulations imposed on unregistered banking.

Importantly, the framework grants legitimacy to crypto services provided by licensed Russian financial firms, encompassing exchanges, brokers, and asset managers.

Moreover, Russian residents will be permitted to buy cryptocurrencies through foreign accounts and transfer them to domestic platforms, albeit with mandatory tax reporting.

This strategy aims to create a controlled but accessible framework for crypto investments, supporting the nation’s economic ambitions amidst international sanctions.

By formalizing these regulations, Russia seeks to integrate cryptocurrencies into its financial ecosystem while effectively managing the associated risks.