Russia's crypto "thawing" moment: Central bank announces new regulations, opening a "walled garden" in 2026.

As the global crypto landscape diverges dramatically between "dollar alternatives" and "tax money," a behemoth that has long maintained an ambiguous stance in the crypto space has finally revealed its hand.

On December 24, 2025, the Central Bank of Russia officially announced a proposed regulatory framework, with plans to complete legislation by July 2026, aimed at legalizing and regulating cryptocurrency transactions by individuals and institutions. This marks a shift in Russia's attitude towards cryptocurrencies from past wavering and restrictions to a systematic "institutionalized absorption."

However, this policy, which has been brewing for several years, is not a simple embrace. It is more like a carefully constructed "walled garden" between geopolitical pressures, the reality of capital outflows, and the demands for financial sovereignty.

A five-year history of policy evolution

Russia's regulatory attitude towards cryptocurrencies has followed a clear trajectory, from "strict prohibition" to "experimental opening," and now to "comprehensive regulation."

• 2020: Putin signed the Digital Financial Assets Act (DFA), which for the first time granted legal status to cryptocurrencies, but prohibited their use as a means of payment in the country.

• In early 2022: The central bank once proposed a radical proposal to completely ban cryptocurrencies and mining, but it was not adopted in the end, and the government's attitude began to shift to "regulation rather than ban".

• 2024: A pivotal turning point. In July, a law was introduced allowing the use of cryptocurrency for cross-border payments under an “experimental legal regime”; in September, the law came into effect; and in November, cryptocurrency mining was officially legalized.

• 2025: Policy deepening continues. At the beginning of the year, mining was restricted in some regions due to energy issues; in March, the central bank proposed an experimental framework to allow qualified investors to trade; in the second half of the year, the system for encrypted cross-border payments will be gradually promoted, and there are plans to relax the rules for qualified investors.

• December 24, 2025 (today): The People's Bank of China released the final draft of the regulatory concept, paving the way for comprehensive legislation in 2026 and clarifying the complete rules from retail investors to institutions, and from trading to custody.

This series of actions clearly outlines a strategic path: from "instrumental use" to alleviate difficulties in cross-border trade to building a "systemic ecosystem" that is domestically controllable and serves national strategies.

Install precision valves for capital flows

The most significant breakthrough of the draft regulations released today lies in opening the door to compliant participation for ordinary citizens, while establishing a refined control mechanism:

• Retail investors are allowed to participate, but with a cap: non-accredited investors (ordinary citizens) can purchase up to 300,000 rubles (about $3,800) worth of cryptocurrency per year through each regulated platform, provided they pass a risk awareness test.

• Professional channel, fully open: Qualified investors will not be subject to trading volume restrictions after passing the knowledge assessment.

• Privacy coin ban: Cryptocurrencies that prioritize privacy and hide transaction data (such as Monero) will remain banned to ensure regulatory traceability.

• Allowing compliant repatriation: The proposal explicitly allows Russian residents to purchase cryptocurrencies abroad using overseas accounts, which can then be transferred to licensed domestic platforms, subject to mandatory tax reporting. This contrasts sharply with the central bank's previous stance of strictly preventing capital outflows through crypto channels.

This move has been interpreted as a pragmatic approach of "combining guidance and control": rather than allowing capital to flow out through completely uncontrollable gray channels, it is better to establish a compliant and taxable return path to bring the underground economy into the sunlight.

Building an ecosystem centered on the "national payment system"

The new framework clarifies that existing licensed financial institutions in Russia—including exchanges, brokers, and asset management companies—will be authorized to offer cryptocurrency services. This means that Russia's cryptocurrency trading ecosystem will likely be dominated by traditional financial giants such as Sberbank and VTB, and may rely on the digital currency trading platform based on the "national payment system," which began development in 2024.

The framework also paves the way for the development of regulatory rules for digital asset custody and wallet providers, aiming to create a complete compliance loop from trading and custody to settlement. Furthermore, the proposal supports the wider use of Russian-made digital financial assets (DFAs) and allows their circulation on international public networks and participation from foreign investors.

This clearly demonstrates that Russia's strategic intent is not simply to introduce external crypto assets, but rather to activate and export its domestic digital asset infrastructure, ultimately serving a larger goal: to establish an alternative cross-border settlement network outside the Western-dominated SWIFT system.

Financial Breakthrough Under Geopolitical Games

Despite the policy shift, the Central Bank of Russia issued a stern risk warning in its press release: "These assets are not issued or guaranteed by any jurisdiction and are subject to higher volatility and sanctions risks... Investors should understand that they will be at risk of potential financial losses."

The phrase "sanctions risk" highlights the deepest driving force behind Russia's crypto policy. Against the backdrop of increasingly stringent Western financial sanctions and exclusion from the mainstream international payment system, cryptocurrencies have transformed from a "threat" into a potential "breakthrough tool." The introduction of the new regulations can be seen as the state's attempt to bring this segment of financial activity, previously outside the system, back under regulatory scrutiny and to transform it into a controlled financial resource serving national strategy.

The statement by Vladimir Chistyukhin, First Deputy Governor of the Central Bank of Russia, also confirms this: "The central bank has relaxed the rules on the circulation of crypto assets, especially given the current restrictions on overseas payments, to provide more legal entities and individuals with opportunities to invest in crypto assets."

The "Russian Path" in a Fragmented Global Regulatory Landscape

Russia's shift is a crucial step in the global crypto regulatory landscape, moving from chaos to order and localization. It differs from the EU's MiCA's "rule export" aimed at establishing a unified market, from the US's attempt to establish global leadership through "ecosystem expansion," and from the UAE's (Abu Dhabi's) ambition to create a global "compliant settlement layer."

Russia has chosen a unique path of defense tempered with aggression, and control with the pursuit of exploitation: domestically, it builds walls, guides the flow of resources, and defends the sovereignty of the ruble; internationally, it seeks to make cryptocurrency a strategic tool for breaking through financial blockades and maintaining trade lifelines. Its ultimate goal may be to explore a de-dollarized alternative financial infrastructure with partners such as BRICS countries.

With the new regulations taking effect in 2026, a market with 140 million people, strong traditional financial resources, and abundant energy will open its doors to the compliant crypto world to a limited extent. This is not only a major transformation of Russia's domestic financial market, but will also undoubtedly place a significant strategic weight on the geo-financial landscape of Eurasia and even the world.