Russia's crypto industry may have everything it needs to begin operating legally by the end of 2026 — the latest sign that Moscow is moving to formalize its crypto market. The framework taking shape would define who in Russia can buy bitcoin, in what amounts, and which services the country's banks can legally offer.

Vladimir Chistyukhin, deputy governor of the Bank of Russia, said regulations were moving ahead on schedule, Interfax reported on Monday.

"Right now we are talking about creating subordinate regulation; it is very large and significant," Chistyukhin was quoted as saying, adding that the "fine-tuning" of internal rules could be completed before the end of 2026. Subordinate regulation is the technical rulemaking that fills in how a framework law works in practice — the layer that turns legislation on the books into rules companies and investors can actually follow.

JUST IN: The Russian Bitcoin and crypto industry may begin functioning within a legal framework before the end of this year, Central Bank Deputy Governor says. pic.twitter.com/Kp1ICUgDrg

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Russia has pressed ahead with crypto legislation this year. In August, President Vladimir Putin signed into law a measure that set in stone the regulation of digital currencies and digital rights in the country — although using bitcoin for payments remains banned. Russia also legalized cryptocurrency mining in 2024, giving that segment of the industry formal status.

The central bank — which in the past pushed for broad restrictions on cryptocurrency use — has approved bitcoin trading for the public on the country's crypto exchanges. Under the law, unqualified investors can buy up to 300,000 rubles ($3,582) worth of bitcoin and other assets through a single intermediary, while qualified investors face no limits.

Sberbank, Russia's biggest bank, plans to debut a bitcoin and crypto wallet as well as digital asset custody services by December. In August, the bank said it expected trading volume from its new crypto rollout reach 4 trillion rubles ($47 billion) in the first year. That December target lands in the same window as the central bank's own year-end deadline for finishing its rules.

Using digital assets as a means of payment or legal tender within Russia has been prohibited since 2022. Despite Putin appearing to praise bitcoin in the past, use as a medium of exchange and currency has been banned for years. The result is a two-track model: bitcoin is being brought into a regulated market as an asset Russians can trade and hold, while its use in domestic commerce remains off-limits.

Russian lawmakers have, however, made an exception for international payments — most likely as a way to circumvent Western sanctions. The U.S. and European governments cut Russia off from the SWIFT payments system after it invaded Ukraine in 2022, and Russian companies have been using bitcoin to skirt the penalties, according to the country's finance minister.

This article first appeared on Bitcoin Magazine and was written by Mathew Di Salvo.