A Russian senator has proposed allowing companies registered in two of the country's special administrative regions (SARs) to conduct settlements using cryptocurrencies. This move aims to facilitate digital transactions without clashing with the central bank's current stance, which prohibits crypto payments within Russia's main jurisdiction.
The proposal comes from Alexander Shenderyuk-Zhidkov, deputy chairman of the Committee on Budget and Financial Markets at the Federation Council. He suggests that companies based in the SARs on Russky Island (Far East) and Oktyabrsky Island (Kaliningrad) could begin piloting cryptocurrency settlements.
Shenderyuk-Zhidkov explained that entities registered in these SARs are not considered residents of the Russian Federation under currency regulations. This distinction would enable them to conduct crypto transactions outside the domain of the Russian ruble, which is the country's sole legal tender, aligning with the Central Bank of Russia's (CBR) requirements.
Currently, while cryptocurrencies are recognized as property in Russia, their use for payments within the country is prohibited. The CBR has only permitted their use for cross-border settlements in foreign trade under a strictly supervised "experimental legal regime" (ELR). This mechanism is reportedly being used by Russian businesses to circumvent financial restrictions imposed by Western sanctions.
However, Shenderyuk-Zhidkov believes the implementation of the ELR has been "too slow." He stated, "I would not like it if we spent six years getting the law right… After all, the ELR is experimental, so that we can experiment, and then accept this and spread it." He is convinced that extending and giving more leeway to the ELR rules within the SARs could expedite this process.
The senator also suggests that this initiative could help attract "foreign companies with Russian roots," potentially bringing crypto assets with Russian origins back into the country as a measure to counter capital flight. As of the end of 2024, nearly 500 companies, including Russian tech giant Yandex, were registered in Russia's SARs, benefiting from flexible tax and currency regulations.
The idea has been met with cautious optimism from experts. Mikhail Uspensky, a member of the expert council of the working group on legislative regulation of cryptocurrency circulation at the State Duma, believes that allowing SAR-registered companies to use cryptocurrencies for settlements is "fairly realistic." He predicts that this would increase the number of authorized crypto payment players, positively impacting the development of Russia's crypto market. However, he anticipates a lengthy approval process.
Maria Agranovskaya, Managing Partner of Agranovskaya & Partners law firm, echoed this sentiment, stating, "The idea itself is sound, but we need to think deeply about how to do it correctly without breaking the law… The opinion of the Bank of Russia is important."
This isn't the first time such a proposal has surfaced. In 2018, the Ministry of Finance suggested using the SARs for trading cryptocurrencies like Bitcoin, though the department has since seemingly aligned more with the CBR's cautious stance on crypto operations.
July 2025, Cryptoniteuae