The Central Bank of Russia officially announced the long-awaited legal framework for regulating crypto trading on December 23, 2023, marking a shift from temporary restrictions to a licensed and properly regulated market.
According to this proposal, cryptocurrencies and stablecoins would be legally recognized as monetary values and could be bought and sold. However, their use for payments would remain prohibited in Russia.
New features brought about by the new legal framework.
The central bank has forwarded the legal proposals to the Russian government for XEM .
This move marks the biggest effort yet to bring crypto-related activities under formal financial oversight, while maintaining tight control over the risks to retail investors and Capital flows. The proposal suggests a two-tiered investor model, differentiating between retail and professional investors.
Retail investors will only be allowed to buy the most liquidation cryptocurrencies , a list that will be clearly defined in upcoming legal documents.
To participate, investors must pass a mandatory risk knowledge test, and the total purchase value must not exceed 300,000 rubles per year.
Professional investors will be subject to more relaxed regulations. They can buy any type of cryptocurrency except for anonymous Token where smart contracts conceal transaction data.
There will be no limit on the number of transactions this group can make, although a knowledge check regarding risks will still be mandatory.
The central bank emphasized that cryptocurrencies remain high-risk assets due to their high volatility, lack of state backing, and susceptibility to sanctions.
The difference from Russia's current position.
Previously, Russia's crypto policy was quite fragmented. Ownership and trading were legal in practice, but lacked clear regulatory procedures.
Retail investors participate in the market in a gray area, intermediaries face significant instability, and solutions are primarily based on unspoken regulations rather than explicit market laws.
This new concept legitimizes what was previously only tacitly accepted, but at the same time tightens the scope of participation for small investors.
At the same time, Russia also affirmed that it will regulate crypto-related activities through its existing financial infrastructure, allowing exchanges, brokerage firms, and fund managers to use their existing licenses to operate. In addition, there will be supplementary requirements for custodians and exchange services directly related to crypto.
This new legal framework also clarifies regulations on cross-border money transfers. Russian citizens can buy crypto abroad using offshore accounts and transfer it overseas through intermediary entities in Russia, provided they notify the tax authorities.
Timeline and execution
The central bank plans to finalize the legal framework before July 1, 2026. From July 1, 2027, those who illegally act as intermediaries in the crypto market will face legal consequences equivalent to those of operating an unlicensed bank.
This step-by-step approach allows organizations and individuals time to adjust to meet licensing requirements, disclose information, and comply with regulations.
Russia's approach to the world
| Area | Russia (BoR concept) | EU (MiCA) | America |
| Legal status | Investment assets (“monetary value”), not subject to payment. | The crypto market is regulated. | Disjointed federal and state administration |
| Retail investors | Participation is permitted, but subject to strict scrutiny and limitations. | Permitted under the information disclosure regime. | Extensive, unlimited federal coverage. |
| Intermediary | Current licenses + specific regulations regarding crypto | A CASP license is required. | Multi-agency framework |
| Stablecoin | Trading is permitted, but payments are prohibited. | Strict management | There is already legislation at the federal level. |
| Handling violations | Implemented in phases, starting in 2027 | Applied | The regulatory agency is constantly monitoring. |
Overall, Russia has not opened its crypto market in the same way as the West.
Instead, Russia is moving crypto activities out of legal gray areas, increasing oversight, limiting risks for retail investors, and guiding crypto trading to develop as an extension of the traditional financial system.
