Russia's crypto "unfreezing" moment: Central bank announces new regulations, opening a "walled garden" in 2026

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As the global crypto landscape sharply diverges between “USD substitutes” and “tax sheep,” a long-ambiguous giant in the crypto field has finally revealed its cards.

On December 24, 2025, the Central Bank of Russia officially announced a proposed regulatory framework, aiming to complete legislation by July 2026, to legalize and regulate individual and institutional cryptocurrency transactions. This marks Russia’s shift in attitude toward cryptocurrencies from past wavering and restrictions to a systematic “institutional absorption.”

However, this multi-year policy brewing is not a simple embrace. It resembles a carefully constructed “walled garden” built amidst geopolitical pressure, capital outflow realities, and financial sovereignty demands.

A Five-Year Policy Evolution

Russia’s stance on cryptocurrency regulation has followed a clear trajectory from “strict prohibition” to “experimental openness,” and now to “comprehensive regulation.”

2020: Putin signed the “Digital Financial Assets Law (DFA),” granting cryptocurrencies legal status for the first time but prohibiting their use as domestic payment methods.

Early 2022: The Central Bank proposed a radical ban on cryptocurrencies and mining, but it was ultimately not adopted. The government’s attitude began shifting toward “regulation rather than prohibition.”

2024: A pivotal turning point. In July, the law permitted cross-border payments using cryptocurrencies under an “experimental legal regime”; in September, the law took effect; in November, cryptocurrency mining was officially legalized.

2025: Policy continued to deepen. Early in the year, some regions restricted mining due to energy issues; in March, the Central Bank proposed an experimental framework allowing qualified investors to trade; in the second half, efforts to develop a cross-border crypto payment system advanced, with plans to relax qualified investor rules.

December 24, 2025 (Today): The Central Bank released the final draft of the regulatory concept, paving the way for comprehensive legislation in 2026, clarifying full rules from retail to institutional, from trading to custody.

This series of actions clearly outlines a strategic path: from “tool-based use” to facilitate cross-border trade, to building a controllable domestic “systemic ecosystem” serving national strategies.

Installing Precise Valves for Capital Flows

The newly announced draft regulation’s core breakthrough is opening the door for ordinary citizens to participate compliantly, while setting up detailed control mechanisms:

Retail entry, but with limits: Non-qualified investors (ordinary citizens) can purchase up to 300,000 rubles (~$3,800) worth of cryptocurrencies annually on each regulated platform, provided they pass a risk awareness test.

Professional channels, fully open: Qualified investors, after passing knowledge assessments, will have unrestricted trading volume.

Privacy coin ban: Cryptocurrencies focused on privacy and hiding transaction data (such as Monero) will still be prohibited, ensuring regulatory traceability.

Allow compliant repatriation: The proposal explicitly permits Russian residents to use offshore accounts to buy cryptocurrencies abroad, which can then be transferred to domestic licensed platforms, subject to mandatory tax reporting. This is in stark contrast to the Central Bank’s previous stance of strictly preventing capital outflows via crypto.

This move is interpreted as a pragmatic “combination of easing and tightening”: rather than allowing capital to flow out through uncontrollable gray channels, it’s better to establish a monitored, taxed, compliant repatriation pathway, bringing underground economy activities into the sunlight.

Building an Ecosystem Centered on the “National Payment System”

The new framework clarifies that existing licensed financial institutions in Russia—including exchanges, brokers, and asset management firms—will have the authority to provide crypto services. This suggests Russia’s crypto trading ecosystem will likely be dominated by traditional giants like Sberbank and VTB, possibly leveraging the digital currency trading platform based on the “National Payment System” that has been promoted since 2024.

Additionally, the framework paves the way for regulating digital asset custody and wallet providers, aiming to create a complete compliant closed loop from trading, custody, to settlement. Furthermore, the proposal supports broader use of Russia’s domestic digital financial assets (DFA), allowing them to circulate on international public networks and involve foreign investors.

This clearly indicates Russia’s strategic intent is not merely to introduce external crypto assets but to activate and export its domestic digital asset infrastructure, ultimately serving a larger goal: establishing an alternative cross-border settlement network outside the Western-led SWIFT system.

Financial Breakthroughs Amid Geopolitical Competition

Despite the policy shift, the Central Bank issued a stern risk warning in its press release: “These assets are not issued or guaranteed by any jurisdiction and face higher volatility and sanctions risks… Investors should understand they may incur potential losses.”

The phrase “sanctions risks” highlights the core driving force behind Russia’s crypto policy. Against the backdrop of tightening Western financial sanctions and exclusion from mainstream international payment systems, cryptocurrencies have shifted from a “threat” to a potential “breakout tool.” The new regulation can be seen as an effort by the state to bring these loosely regulated financial activities back into oversight and attempt to transform them into a controlled financial resource serving national strategies.

Vladimir Chistokhousov, First Deputy Governor of the Central Bank, also confirmed this: “Relaxation of crypto asset circulation rules, especially amid current restrictions on overseas payments, provides more opportunities for legal entities and individuals to invest in crypto assets.”

“Russia Path” in the Fragmented Global Regulatory Landscape

Russia’s shift is an important part of the global move from chaotic to orderly, localized crypto regulation. It differs from the EU’s MiCA, which aims to create a unified market through “rule export,” from the US’s attempt to establish global dominance via “ecological expansion,” and from the UAE (Abu Dhabi)’s ambition to build a global “compliant settlement layer.”

Russia has chosen a unique path of cautious defense combined with proactive control: domestically, building walls, guiding water flows, and defending the ruble’s sovereignty; internationally, trying to make cryptocurrencies a strategic tool to break financial blockades and maintain trade lifelines. Its ultimate goal may be to explore a de-dollarization alternative financial infrastructure jointly with partners like BRICS countries.

With the implementation of the 2026 regulations, a market of 140 million people, with strong traditional financial strength and abundant energy resources, will be cautiously opened to the compliant crypto world. This is not only a major transformation of Russia’s domestic financial market but also a significant strategic move that will influence the geopolitical and financial landscape of Eurasia and beyond.