Russia Enacts Crypto Exchange Rules but Keeps Payment Ban
Key Takeaways
- •The reported law formalizes the regulation of digital currencies and digital rights in Russia.
- •Only registered entities are allowed to operate exchanges under the new framework, according to Tass.
- •Retail investors are limited to trading the most liquid cryptocurrencies, with an annual cap of 300,000 rubles ($3,700).
- •The law continues to prohibit digital currencies and digital rights from being used as payment or legal tender in Russia.
- •Tass reported that digital currencies may still be used for foreign trade contracts and for transactions involving crypto mining.
Russian President Vladimir Putin has reportedly signed a law that formalizes the regulation of digital currencies and digital rights in Russia, while keeping in place the prohibition on using cryptocurrencies as a means of payment.
News agency Tass reported Tuesday that the new law allows only registered entities to operate as exchanges and places limits on the amount of crypto that retail investors can trade.
Under the reported rules, retail investors are limited to trading the most liquid cryptocurrencies, with a cap of 300,000 rubles ($3,700) per year. Qualified investors face no restrictions, according to the report.
The law still prohibits digital currencies and digital rights from being used as payment or legal tender inside Russia. The use of crypto as a form of payment has been illegal in the country since 2022, even as Moscow has continued to develop a more formal framework for how digital assets can be handled under domestic law.
According to Tass, Russians may use digital currencies to settle foreign trade contracts between residents and non-residents, or for transactions involving crypto mining.
Russian regulators, lawmakers and the central bank have spent the past few years working to establish clearer rules for digital assets. The reported structure reflects that broader effort: it creates a narrower path for exchange activity and investor participation while maintaining a hard line on everyday payments inside the country.
Putin and Bitcoin
The report that digital currencies still cannot be used for payments may surprise readers familiar with Putin’s past remarks about Bitcoin.
In 2024, the Russian leader appeared to speak favorably about Bitcoin, saying that new technologies were emerging that could help people move money.
“For example, Bitcoin, who can ban it? Nobody,” he said.
BREAKING: Russian President Putin says "Who can ban #Bitcoin ? Nobody." pic.twitter.com/6mJ664BZZ8 — Bitcoin Magazine (@BitcoinMagazine) December 4, 2024
The president has also said Russia has “competitive advantages” in Bitcoin mining because of its abundant cheap energy.
At the same time, Russian lawmakers have sought to keep tight control over domestic spending. Digital currency has been permitted for international payments for years, likely as a way to bypass Western sanctions.
This article first appeared on Bitcoin Magazine and is written by Mathew Di Salvo.