Russia Officially Advances Negotiations on Cryptocurrency and Establishes New Rules for Retail

Russia has taken a significant step in regulating the cryptocurrency market: President Vladimir Putin has signed a law that establishes rules for the trading of these assets within the country. The new framework sets standards for investors, brokers, and custodial firms, and clarifies who can trade cryptocurrencies and under what conditions.

The legislation maintains the prohibition on using cryptocurrencies as a means of payment within the Russian economy. However, it begins to formally recognize the trading of these assets as an investment and establishes a regulated environment for authorized individuals and financial institutions.

A major change benefits retail investors. Under the new rules, this group will be able to purchase cryptocurrencies deemed to have higher liquidity, while adhering to an annual limit of 300 million rubles (approximately USD 3,700) per intermediary. The government still needs to determine which digital currencies will fall into this category.

For qualified investors, the restrictions are different. This group can trade any cryptocurrency without financial limits, provided they meet the standards set by regulators. Before entering the market, all participants must undergo an appropriateness test to assess their knowledge and investment status. The legislation also stipulates that retail investors can achieve qualified investor classification based on their trading history.

Companies wishing to provide cryptocurrency trading services will also face new requirements. Brokers need to obtain official registration to operate in the country, proving a minimum net asset of 15 million rubles and joining self-regulatory entities in the financial market. The goal is to strengthen oversight of the industry and standardize platform operations.

Although Russia still prohibits the use of cryptocurrencies in purchases and payments, the legislation retains their use in businesses related to international trade. The country has authorized such transactions starting in 2024 as an alternative to conducting business with foreign partners amid economic restrictions imposed by Western countries.

Most rules will take effect from September 1, 2026. Regulations related to the issuance and circulation of cryptocurrencies will only come into effect in September 2027. Brokers already operating in the market will have until March 1, 2027, to comply with the new requirements.

The approval of this law consolidates a process that began in the first half of 2026 when the project started deliberation in the State Duma. Meanwhile, the Central Bank of Russia has been developing regulations to govern organized trading of digital assets, including requirements for brokers and institutions responsible for cryptocurrency custody.

While expanding trading regulation, the Russian government is also tightening its policies on cryptocurrency mining. A recently issued decree states that mining activities will be suspended in Moscow, the metropolitan area, and the Kursk region from August 2026 until the end of 2032.