Russia has introduced a landmark cryptocurrency law that brings digital asset trading into the country's regulated financial system. While Russians will soon be able to buy and sell approved cryptocurrencies through licensed exchanges, digital currencies will remain prohibited as a means of payment inside the country.
INR Report: Based on reporting by RT HERE.
Russian President Vladimir Putin has signed the Law on Digital Currencies and Digital Rights, establishing Russia's first regulated cryptocurrency market. The legislation formalises what officials describe as an already substantial crypto sector, with blockchain analytics firm Chainalysis ranking Russia as Europe's largest cryptocurrency market by transaction volume. Russia's Finance Ministry estimates domestic cryptocurrency trading currently averages around 50 billion rubles (approximately US$650 million) per day.
The legislation takes effect from 1 September 2026 and will allow Russians to trade approved cryptocurrencies through licensed platforms supervised by the Central Bank of Russia. The new framework also introduces official digital registries to record cryptocurrency ownership in a manner similar to traditional financial assets.
Despite legalising regulated trading, the new law does not make cryptocurrency legal tender within Russia. Digital currencies will remain prohibited for purchasing goods and services domestically, preserving the ruble as the country's sole legal means of payment.
The law distinguishes between retail and professional investors. Retail investors must complete a basic knowledge assessment before purchasing cryptocurrency and will be limited to investing 300,000 rubles (around US$3,800) per year through each licensed platform. Professional or "qualified" investors must also complete the knowledge test but will not face investment caps.
Initially, only the world's largest and most actively traded cryptocurrencies will qualify for trading under the new regime. According to the Central Bank's published criteria, eligible digital assets must meet minimum market capitalisation and trading volume thresholds. Central Bank First Deputy Governor Vladimir Chistyukhin said Bitcoin, Ether (Ethereum) and the USDT stablecoin currently satisfy those requirements, with additional cryptocurrencies able to qualify in the future.
The legislation leaves Russia's existing cryptocurrency mining rules largely unchanged. Industrial mining operations must remain registered with authorities, report production and pay taxes, while individuals may continue mining at home provided their electricity consumption remains below government limits. Mining restrictions also continue in regions where electricity supplies are under pressure.
A key objective of the legislation is to facilitate cross-border trade. Although cryptocurrency cannot be used for domestic purchases, Russian businesses will continue to be permitted to settle international transactions using digital currencies. The measure forms part of Moscow's broader effort to develop alternative payment mechanisms following Western sanctions that limited access to parts of the dollar- and euro-based financial system after 2022.
Does This Affect New Zealand?
While the legislation applies only within Russia, it reflects the continuing evolution of cryptocurrency regulation worldwide. As more countries develop formal legal frameworks for digital assets, policymakers and financial regulators in New Zealand and elsewhere will continue monitoring how different regulatory approaches affect innovation, financial stability, consumer protection and international trade.
The law also illustrates how digital currencies are increasingly being considered as part of cross-border settlement systems, particularly in countries seeking alternatives to traditional international payment networks.
Independent reporting. Original context. Credited sources.