Legal Status of Cryptocurrencies in Russia: What’s Allowed and What’s Banned in 2025

• DATE: 16 11 25
• BY: Stellan Marwick

As of 2025, you can legally own Bitcoin in Russia - but you can’t use it to buy coffee, pay rent, or even send money to your cousin in St. Petersburg. The country’s approach to cryptocurrency isn’t about banning it outright. It’s about controlling who gets to touch it, how, and why. And the answer isn’t simple: it’s a system built for the wealthy, the powerful, and the internationally connected - while ordinary Russians are left in a legal gray zone.

Ownership Is Legal. Spending Is Not.

If you’re a regular Russian citizen, you can buy Bitcoin, Ethereum, or any other crypto on a foreign exchange and store it in your wallet. No law says you can’t hold it. But if you try to use that Bitcoin to pay for groceries, order a taxi, or settle a bill with a local business? That’s illegal. The only legal tender in Russia is the ruble - and soon, the digital ruble. Anything else? Not allowed for everyday use.

This isn’t a new rule. It’s been the law since 2021, under the ‘On Digital Financial Assets’ act. That law was meant to regulate tokenized securities and digital rights - but it deliberately left out Bitcoin and other decentralized coins. The Bank of Russia made it clear: crypto isn’t money. It’s a speculative asset. And like any risky investment, it’s fine to hold - as long as you don’t treat it like cash.

The Two-Tier System: Who Gets Access?

But here’s where it gets strange. While you can’t use crypto to pay for your groceries, someone with over 100 million rubles ($1.1 million USD) in securities and deposits can. And if they earn more than 50 million rubles a year? They’re officially an “especially qualified investor.” That’s the only group allowed to legally trade crypto derivatives, invest in crypto-linked financial products, or even participate in sanctioned crypto transactions.

These rules were formalized in 2025 under a new three-year experimental regime. It’s not a free-for-all. It’s a tightly controlled sandbox. Only banks and financial firms approved by the Central Bank can offer these products. And even then, they can’t deliver actual Bitcoin. They offer contracts - derivatives - tied to its price. You’re betting on the value, not owning the coin.

For the average person? No access. No legal trading. No wallets on Russian platforms. No crypto ATMs. No exchanges licensed in Russia. The system is designed to keep crypto away from the public - while letting the elite play.

Why This Strange System Exists

It’s not about fear of technology. It’s about survival.

Since 2022, Western sanctions have cut Russia off from SWIFT, Visa, Mastercard, and most global banking channels. Russian companies needed a way to trade with partners in China, India, Turkey, and other countries that still accept crypto. So the government quietly approved a workaround: international crypto settlements.

In 2025, Russian firms used cryptocurrency to conduct over 1 trillion rubles ($11 billion USD) in cross-border trade. That’s not small change. It’s a lifeline. Bitcoin, Ethereum, and stablecoins became the unofficial currency of Russian exports - oil, metals, grain - sold to countries that don’t care about U.S. sanctions.

The Central Bank didn’t want this. But the Treasury did. And in the end, pragmatism won. The result? A split personality in Russian policy: crypto is banned for domestic use, but encouraged for international trade - under strict oversight.

What About Mining?

One of the few crypto activities still fully legal for ordinary Russians is mining. Since 2014, Russia has treated cryptocurrency mining as a form of energy consumption - not financial activity. So if you’ve got cheap electricity and a warehouse full of ASICs, you can legally run a mining farm. There are no licenses needed. No reporting requirements.

That’s why Russia became one of the world’s top five Bitcoin mining countries by 2024. But here’s the catch: the coins you mine? You can’t legally spend them. You can’t sell them on Russian exchanges. You can only send them abroad - and even then, you risk scrutiny if the amount is large.

So mining isn’t a path to freedom. It’s a loophole - and a risky one.

The Digital Ruble Is Coming - and It’s the Real Goal

Behind all this chaos is a bigger plan: the digital ruble.

The Bank of Russia has been testing its own central bank digital currency (CBDC) since 2021. By September 2026, it’s scheduled to launch nationwide. Unlike Bitcoin, the digital ruble won’t be decentralized. It won’t be anonymous. It won’t be open to the public for peer-to-peer transfers without bank approval.

It’s a state-controlled digital cash system. Every transaction can be tracked. Every wallet can be frozen. Every payment can be monitored.

The message is clear: Russia doesn’t want to replace the ruble with Bitcoin. It wants to replace Bitcoin with a version of the ruble that’s digital, traceable, and fully under government control.

What’s Happening on the Ground?

Despite the rules, Russians are still using crypto. A lot.

The Russian Association of Cryptoeconomics estimates over 15 million people hold digital assets - up 15% every year since 2021. The total value of crypto held by Russians exceeds $40 billion. Most of it is stored on foreign platforms like Binance, Bybit, or Kraken. Many use P2P platforms like LocalBitcoins or Paxful to buy Bitcoin with rubles - even though that’s technically illegal.

There’s no crackdown on individual users. The government doesn’t have the resources - or the will - to chase down thousands of small-time holders. But if you’re running a crypto exchange, accepting crypto as payment, or promoting it to the public? That’s when the fines, arrests, and website blocks come.

The Internal Battle: Treasury vs. Central Bank

There’s a quiet war inside the Russian government.

The Central Bank of Russia, led by Elvira Nabiullina, still calls crypto a “money surrogate” and a threat to financial stability. They’ve issued dozens of warnings to the public. They’ve blocked hundreds of crypto-related websites. They’ve pressured banks to cut off crypto-related transactions.

Meanwhile, the Ministry of Finance - led by Deputy Head Ivan Chebeskov - wants to use crypto for economic growth. They’ve pushed to lower the qualification thresholds for investors. They’ve floated ideas for fiat-pegged stablecoins issued by Russian banks. They see crypto not as a danger, but as a tool.

This tension is why the rules keep shifting. The experimental regime may expand. The investor thresholds might drop. But the core rule - no domestic payments - won’t change. Not while the digital ruble is still being tested.

What’s Next?

By 2027, the experimental regime will be reviewed. If it’s deemed successful, the government might open up crypto access to more investors - but still not the public. Expect more stablecoin pilots. More derivatives. More international trade using crypto. But don’t expect to pay your utility bill in Bitcoin.

And if the digital ruble launches smoothly in September 2026? That’s the endgame. Russia won’t need Bitcoin. It will have its own digital currency - one that looks like crypto, acts like cash, but answers only to the Kremlin.

The message is simple: Russia doesn’t hate crypto. It just wants to own it - and control it - completely.