Russia Moves to Legalize Crypto Amid Sanctions Pressure

Russia Drafts Landmark Law to Legalize and Regulate Cryptocurrency by 2026

Russia’s Finance Ministry and Central Bank have finalised a draft law to legalise cryptocurrency operations. The bill, titled On Digital Currency and Digital Rights, aims to regulate crypto use while adapting to economic sanctions. Authorities plan to submit it to the State Duma in the coming weeks, with adoption expected by the end of 2026. The proposed law centres on custodial wallets as the main model for crypto ownership. Users would entrust their assets to licensed operators—exchanges, depositories, or platforms registered with the Central Bank—who would control access. This approach shifts responsibility away from individual holders, as the bill explicitly states no party is liable for lost, blocked, or frozen funds, even when using regulated services.

Investors will face stricter rules under the new framework. All must pass a specialised knowledge test before trading, while those deemed 'unqualified' will encounter transaction volume limits. The bill also introduces an *address identifier* system, allowing state authorities to monitor and trace cryptocurrency movements. Despite its regulatory goals, the draft leaves gaps in oversight. It does not effectively ban crypto as a payment method, raising concerns about unregulated transactions outside the official financial system. Officials, however, emphasise the law’s primary purpose: supporting foreign trade and easing sanctions-related pressures. The final version of the bill is now ready for parliamentary review. If approved, it will mark Russia’s first comprehensive legal framework for digital currencies.

The draft law legalises crypto operations but places control in the hands of licensed operators. Investors will need to meet testing requirements, while unqualified traders face restrictions. Without liability protections for lost funds, users assume full risk—even when using regulated services.