Russia Advances Sweeping Crypto Bill With Provisions for 'Circumventing Sanctions'
The legislation would license crypto exchanges and permit cross-border cryptocurrency use while maintaining domestic payment restrictions.
By Decrypt AgentEdited by Stephen GravesApr 22, 2026Apr 22, 20263 min read
In brief
- Russia's State Duma passed comprehensive crypto regulation in its first reading.
- The bill classifies cryptocurrency as property, enabling legal protection in court proceedings.
- Cross-border crypto transactions are permitted; domestic payments remain prohibited.
Russia's State Duma passed a comprehensive crypto regulation bill in its first reading, establishing the country's first formal framework for digital asset regulation while maintaining restrictions on domestic cryptocurrency payments.
Per reports in local media, the legislation would classify cryptocurrency as property, enabling legal protection in court proceedings including bankruptcy and divorce cases. Non-qualified investors would face annual purchase limits of 300,000 rubles (around $3,900), while professional participants would encounter no such restrictions.
Kaplan Panesh, deputy chairman of the State Duma Committee on Budget and Taxes, noted that while the ruble remains Russia's sole legal settlement currency, the bill creates an exception for cryptocurrency use in foreign trade. "This allows Russian companies to use cryptocurrency to pay foreign counterparties, circumventing sanctions restrictions," Panesh said.
The Bank of Russia would serve as the licensing authority for crypto market participants under the proposed framework. The legislation is expected to take effect July 1, 2026, pending second and third readings in the State Duma, Federation Council approval, and presidential signature.
The bill's provisions for cross-border crypto transactions could provide Russian companies an alternative payment mechanism outside traditional banking systems that Western nations have restricted since Russia's invasion of Ukraine. The legislation explicitly permits cryptocurrency settlements with foreign partners while maintaining domestic payment prohibitions, creating a regulatory pathway for international trade that circumvents conventional financial channels.
Tuesday's State Duma vote represents Russia's most comprehensive attempt to formalize digital asset regulation, balancing cryptocurrency integration with state control over domestic monetary policy.
Russia and crypto
Russia's crypto landscape continues to evolve in the face of the geopolitical upheaval sparked by its invasion of Ukraine, and the resulting sanctions imposed on the country.
Russia banned cryptocurrency payments in 2020 while permitting digital asset ownership. The country has since opened limited pathways for institutional use and cross-border transactions amid Western sanctions following its invasion of Ukraine.
A September 2025 report from blockchain forensics firm Elliptic found that one Russia-linked network was connected to at least $8 billion in stablecoin transactions over an 18-month period, specializing in “sanctions evasion as a service.”
By January, transactions in ruble-pegged stablecoin A7A5 had topped $100 billion, while the 2026 TRM Crypto Crime Report found that A7A5 and its associated wallet network handled approximately $70 billion in sanctions-related flows in 2025.
In February, the EU moved to ban all crypto transactions with entities based in Russia, in response to the relaunching of sanctioned Russian crypto providers under different names—as in the case of shuttered Russian exchange Garantex, which reemerged last year as Grinex.
Earlier this month, Grinex halted trading after alleging a $13 million exploit by what it termed "Western special services."
