Russia is preparing for a dramatic policy turnaround by moving to legalize and regulate cryptocurrency exchanges, a significant shift driven by mounting economic sanctions and the need for new international trade channels.
After years of resistance, the Russian government and the Bank of Russia are now working to create a state-controlled framework for swapping rubles and digital assets.
Key Drivers and Proposed Changes
The move, advocated by First Deputy Chairman Vladimir Chistyukhin of the Bank of Russia, is a pragmatic response to both domestic and international pressures:
- Necessity over Ideology: The central bank's years-long opposition to crypto softened after international sanctions severely limited Russian access to Western financial systems. Regulated crypto is now viewed as an essential geopolitical tool for economic survival.
- Controlling the Underground: The absence of clear rules has led to the proliferation of informal "crypto kiosks" operating without oversight. Legalization would bring this activity under state supervision, aiming to combat money laundering and terrorist financing.
- Boosting International Trade: Regulators approved the use of Bitcoin and other digital assets for cross-border settlements in 2023, but adoption has been slow. A clear, regulated system is expected to accelerate the use of blockchain transactions as an alternative for sanctioned Russian exporters and importers.
- Government Alignment: Finance Minister Anton Siluanov confirmed the ministry's support for the legalization effort, stating that a national law is necessary to organize the sector and track financial flows.
A Controlled Market, Not a Free One
Despite the warming stance, officials have made it clear that this is a move toward control, not liberalization. The new framework will likely establish a state-curated digital economy:
- Limited Access: The regulated system is expected to cater primarily to corporations and accredited investors, largely excluding ordinary citizens from direct, public access.
- Strict Oversight: Discussions in Moscow include potential criminal penalties for unauthorized crypto trading, reinforcing the government’s intent to supervise every aspect of the digital asset market.
The ultimate goal is for crypto to serve Russia's strategic economic interests—facilitating trade and reducing reliance on Western finance—but strictly under state authority.
October 2025, Cryptoniteuae