Russia’s position in encrypted currencies has witnessed a major shift in recent years, as it has moved from strict opposition to a more accurate and strategic approach.
Once a complete ban on digital assets, the Bank of Russia now proposes a regulatory framework that would allow wealthy individuals to invest in encrypted currencies.
This shift is noticeable, given the position taken by the Central Bank of Russia in early 2022, when it published its first report on organizing the cryptocurrency market for discussion with the market called “cryptocurrencies: trends, risks, measures.”
At that time, the organizer, led by Governor Evira Nabulina, prompted a direct ban on cryptocurrencies, noting their use in illegal activities and the risks of financial instability.
“We cannot welcome investments in such assets. Curricula is often used for illegal criminal transactions, they are not transparent,” she
He said at a press conference on December 17, 2021.
However, the political geopolitical scene dramatically turned with Russia’s extensive invasion of Ukraine, which led to unprecedented Western sanctions that isolated the nation from traditional financial systems.
In response, the Russian authorities began to reassess their location in encrypted currencies, while realizing their ability to circumvent economic restrictions and facilitate international trade.
Crying codification of international trade
In July 2024, Russia took a historical step by legalizing the cryptocurrency of international payments.
With the country struggling with financial isolation due to the sanctions, the state agreed to legislation that allows companies to use cryptocurrencies in border trade.
“We make a historic decision in the financial field,” said Anatoli Akakov, president of Douma, to support this measure.
This step was widely considered an attempt to maintain decisive trade relations with China, Turkey and other partners despite American and European restrictions.
Mati Greenspan, CEO of Crypto Research for Quantum Economics, indicated that Russia’s axis towards digital assets was inevitable as bitcoin transactions “cannot be controlled or prohibited by any government or bank.”
“In the past, Russia will not want to allow this type of freedom of transaction to its citizens – but we are now at the point where bitcoin is often used in trade every day so that the alternative opportunity costs it so that it does not allow it very simply.”
With legislative support, Russian companies have begun to benefit from cryptocurrencies such as Bitcoin and Tether in foreign trade, especially for energy exports.
According to Finance Minister Anton Celuanov, many companies have already incorporated digital currencies into international transactions by late 2024.
Legal coded currency mining gains
The other main aspect of the advanced encryption strategy in Russia was the coding of cryptocurrency mining, effective from November 1, 2024.
The new law allowed registered entities and individual businessmen to engage in mining activities with specific limits to energy consumption on unregistered operators.
This development represents another important departure from the previous doubts of Russia about digital assets, as it recognized the economic capabilities of mining in generating revenues and maintaining global importance in the encryption sector.
In addition, the legislation has created a experimental system by which the Bank of Russia can grant the selected companies permission to make boundaries and trade in digital currencies.
This referred to an important step towards the regulatory integration of digital assets in the wider financial system.
Payments of encryption for oil trade
By early 2025, reports have emerged that Russia has begun to use encrypted currencies for oil transactions with China and India, which actually exceeded Western sanctions.
The sources familiar with the matter told Reuters that Russian energy companies have facilitated the payments in digital assets, and have benefited from encryption to convert Chinese rupees and India into rubles.
The report indicated that even if the sanctions are lifted, Russia may continue to use encryption in the oil trade due to the flexibility and comfort it provides.
Exclusive investment opportunities for wealthy individuals
In March 2025, Russia took another step in its encryption development through the proposal of an experimental legal system (ELR) that would allow a “limited group of Russian investors” to engage in the trading of cryptocurrencies.
Under this proposal, only “qualified” – who have been defined as individuals with securities and investments exceeding 100 million rubles ($ 1.15 million) or annual income over 50 million rubles ($ 570,000) – will be allowed to participate.
The Central Bank, which has long resisted the adoption of encryption, justifies the initiative as a way to improve the transparency of the market while maintaining strict control.
The financial plans that are looking to engage in encryption investments may also be subject to specific regulatory requirements designed to the risks associated with digital assets.
Organizational obstacles are still in place
Despite these progressive steps, the encryption scene in Russia is still fraught with challenges.
In February 2025, the country’s communications organizer, Roskomnadzor, prevented access to the Bestchang currency exchange platform, pointing to unlimited legal violations.
This step shed light on the ongoing tensions between the organizational authorities and the encryption sector, as Russia seeks to achieve a balance between innovation and control.
Meanwhile, the future of the digital ruble – the digital bank of the Central Bank in Russia (CBDC) – does not matter.
Initially, the Digital Roble project that was initially identified in July 2025 was identified, and he faced delays amid internal discussions about its integration with the current financial structures.
Strategic transformation with global effects
Russia’s strategic axis towards cryptocurrencies carries great global effects.
By adopting the digital assets of international trade and proposing the organized investment frameworks, Russia puts itself to alleviate the impact of Western sanctions and reduce dependence on traditional financial systems.
This approach reflects the tactics used by other approved countries, such as Iran and Venezuela, highlighting a wider direction to use encrypted currencies to move in economic restrictions.
However, experts warn that although encrypted currencies provide alternative ways to trade and investment, the current market liquidity may be insufficient to compensate for the effects of sanctions on a large scale.
In addition, the acceptance of currencies coded by other countries still is affected by current laws and pressure from Western financial organizers.
Published from doubts to strategic adoption: How Russia reconstitutes its cryptocurrency policy first on Invezz
