In recent years the Russian position towards cryptocurrencies changed significantly. It went from a strict anti-cryptocurrency stance to one that is more strategic and nuanced.
The Bank of Russia, which once advocated a ban on all digital assets and now proposes a regulatory structure that will allow wealthy investors to invest in cryptocurrency.
This shift in stance is noteworthy, given that the Russian central bank published its first document on the regulation of the cryptocurrency market for the discussion by the market, entitled “Cryptocurrencies – Trends, Risques, Measures” at the beginning 2022.
The regulator at the time was led by Elvira Nabibullina and pushed to ban cryptocurrencies outright, citing the use of cryptocurrencies in illegal activities as well as the risk they pose for financial instability.
We cannot accept investments in these assets. She said that cryptocurrency is often used to carry out illegal criminal activities and they are not transparent.
Said at a Press Conference on 17 December 2021.
The geopolitical scene changed dramatically after Russia invaded Ukraine in full force, resulting in unprecedented Western sanctions which isolated Ukraine from the traditional financial system.
As a result, Russian authorities started to reconsider their position regarding cryptocurrencies. They recognized their ability to bypass economic restrictions and to facilitate international trade.
Cryptocurrency legalized for international trade
Russia made a historic step in July 2024 by allowing cryptocurrency to be used for international payment.
The State Duma has approved legislation allowing businesses to use cryptocurrency in cross-border trading.
Anatoly Aksakov said, “We’re taking an historic financial decision.”
It was widely perceived that the move was an attempt to maintain vital trade relations with China, Turkey and other partners, despite US or European restrictions.
Mati Greenspan of Quantum Economics’ crypto-research firm noted that Russia’s shift to digital assets is inevitable, as Bitcoin transactions are “uncensorable or blockable by any bank or government.”
He added that “Russia would have previously not allowed that type of freedom in transactions to its citizens. But now, bitcoin is so widely used that it’s an opportunity cost to not allow it.”
Russian companies began to use cryptocurrencies such as Bitcoin and Tether for foreign trade with the support of legislation, especially in energy exports.
According to Anton Siluanov of the Ministry of Finance, by 2024 several companies would have already integrated digital currencies in international transactions.
The mining of cryptocurrency gains legitimacy
The legalization of mining cryptocurrency, which will take place on November 1, 2024, is another key element of Russia’s crypto-strategies.
New law allows registered companies and individuals to carry out mining operations, while imposing specific limits on energy consumption for unregistered entities.
The Russian government has shifted its stance from being skeptical about the digital asset sector to recognizing the potential for mining as a way of generating income and maintaining the global prominence in the crypto industry.
The legislation also established an experimental system under which select companies could be granted permission by the Bank of Russia to carry out cross-border payments and trade digital currency.
The integration of digital assets within the financial system was a major step forward.
Oil trade crypto payments
Early 2025 reports revealed that Russia was using cryptocurrency for oil transactions between China and India. This effectively allowed them to bypass Western sanctions.
Reuters reported that sources familiar with the issue said Russian energy companies had facilitated payment in digital assets by leveraging cryptocurrency to convert Chinese yuan into rubles and Indian rupees.
This report suggests that Russia may continue to use crypto for its oil trading even after sanctions are lifted due to its flexibility and convenience.
Investment opportunities exclusively for the wealthy
Russia made another leap in the evolution of its cryptocurrency in March 2025 by proposing a legal experimental regime (ELR), which would permit a limited group of Russians to trade cryptocurrencies.
Only “especially qualified” investors, defined as those with investments in securities or deposits exceeding 100 millions rubles ($1.15million) or an income of 50 million rubles (about $570,000), would be allowed to participate.
Central bank officials, who had previously resisted the adoption of crypto, justified this initiative by claiming that it would improve transparency on the market while still maintaining strict supervision.
Regulatory requirements for financial institutions that invest in digital assets will also include specific regulations tailored to their risks.
Regulatory hurdles persist
The crypto-space in Russia remains challenging despite these steps.
Roskomnadzor (the country’s communication regulator) blocked BestChange in February 2025 due to unspecified violations of the law.
This move highlights the tensions that exist between the regulatory authorities and crypto industry as Russia tries to find a balance of innovation and control.
The future of digital ruble, Russia’s Central Bank Digital Currency (CBDC), remains uncertain.
The digital ruble was originally scheduled to be launched in July 2025. However, delays have occurred due to internal discussions about its integration into existing financial structures.
Strategic shifts with global implications
The global impact of Russia’s pivot towards cryptocurrencies is significant.
Russia has positioned itself by embracing digital currencies for international trade, and by proposing investment frameworks that are regulated to reduce the effects of Western sanctions.
The use of cryptocurrency to circumvent economic restrictions is a trend that has been adopted by many sanctioned countries, including Iran and Venezuela.
Experts warn that, while cryptocurrency offers alternative trade and investment avenues, the current liquidity of their market may not be enough to offset all effects from large-scale sanction.
The acceptance of cryptocurrency by other countries is also uncertain. This can be influenced by the existing laws as well as pressures coming from Western financial regulators.
The post How Russia’s cryptocurrency policy is changing from skepticism into strategic adoption may change as new developments unfold.
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