Crypto regulation in Russia
Russia’s approach to cryptocurrency has evolved significantly in recent years, marked by a move from strict restrictions to a more regulated and experimental framework aimed at leveraging crypto for economic and geopolitical advantages. Cryptocurrency is increasingly popular in Russia despite regulatory complexities and restrictions. As of 2025, about 29% of the Russian population is projected to use cryptocurrencies, indicating significant user penetration. Russia ranked 13th globally in crypto adoption by 2023, up from 18th in 2021, showing a rising trend in usage.
Economic uncertainty and Western sanctions have pushed many Russians and businesses to use cryptocurrencies like Bitcoin and Ethereum as alternatives for international transactions and to protect savings from ruble devaluation and inflation. Crypto mining is also a major activity in Russia due to cheap electricity and favorable climate, attracting both individuals and companies. Growing public awareness through social media and online platforms has increased interest, with nearly 20% of Russians having used crypto and over 65% aware of it. However, adoption faces challenges such as unclear regulations, banking restrictions (banks do not offer crypto services), cybersecurity risks, and government controls on advertising and public sales of cryptocurrencies. Despite these, crypto remains a valuable tool for many Russians, especially for cross-border payments and investment opportunities.
Cryptocurrencies status
In 2020, Russia legalized cryptocurrencies but prohibited their use for payments of goods and services, including international trade. This stance was partially reversed in November 2024 with a new law that established a regulatory framework for cryptocurrency mining and allowed certain businesses to use cryptocurrencies for international payments under an «experimental» regime overseen by the Bank of Russia. This legal framework permits officially registered Russian businesses and entrepreneurs to engage in crypto mining, with provisions to regulate energy consumption and the possibility to ban mining in specific regions to manage local conditions. The Ministry of Justice is also working on legislation to classify crypto assets as property, enabling authorities to confiscate digital assets during criminal investigations and block transactions linked to illicit activities, addressing the rise in crypto-related crime.
In parallel, the Russian central bank has proposed allowing «specially qualified» or «highly qualified» investors — those with significant financial means — to trade crypto assets within a controlled experimental legal regime, aiming to increase market transparency while maintaining a ban on cryptocurrency as a payment method. A crypto exchange for highly qualified investors is planned to be launched by the Finance Ministry and the Central Bank to legalize crypto asset trading and bring operations out of the shadows, though this will operate under the experimental regime and not domestically for general use.
Crypto exchanges
In present, the situation with cryptocurrency exchanges in Russia remains complex due to ongoing regulatory changes and international sanctions. Due to Western sanctions over the Ukraine conflict, major exchanges like Binance have limited services for Russian users. The U.S. and EU have targeted Russian-linked crypto businesses to prevent sanctions evasion. Many exchanges (e.g., Coinbase and Kraken) have exited the Russian market, while others (like KuCoin and ByBit) still operate but with restrictions.
There are no officially licensed cryptocurrency exchanges operating under a Russian license because Russia has not yet issued licenses for crypto exchanges domestically. The Russian government and Rosfinmonitoring are working on a licensing framework expected to be completed by the end of 2025, but no exact deadlines are set yet. Meanwhile, many crypto exchanges serving Russian clients operate under licenses from other countries, including some from CIS states like Kyrgyzstan or Belarus, or from jurisdictions such as Dubai and Singapore.
This reliance on foreign licenses allows exchanges to provide services to Russian users while avoiding direct Russian regulatory requirements, which remain in flux. However, the upcoming Russian licensing regime will require exchanges operating with Russian clients to register locally, collect and store client data, and comply with anti-money laundering rules. Also notable the situation with Garantex, a crypto exchange registered in Estonia but linked to Russia, that has been sanctioned by the U.S. Treasury for allegedly facilitating illicit financial flows, including ransomware and darknet market transactions. The U.S. claims Garantex processed over $100 million in suspicious transactions, including funds tied to sanctioned Russian entities.
Taxation
Starting from 2025, Russia taxes cryptocurrency as property, integrating it into the regular tax system with clear rules for individuals and businesses.
For individuals income from selling cryptocurrencies and mining is subject to personal income tax at a rate of 13% on earnings up to 2.4 million rubles per year. For income exceeding 2.4 million rubles, the tax rate rises to 15% on the amount above this threshold. Income from crypto is combined with other investment incomes like securities for tax calculation purposes. Individuals earning less than 50,000 rubles from crypto activities annually are exempt from reporting and taxation.
Crypto mining companies and other legal entities pay a 25% corporate profit tax on earnings from mining and crypto sales. Mining operations are exempt from Value Added Tax (VAT), reducing their tax burden by 20%. Special tax regimes (like simplified taxation) are not available for crypto businesses; only the general taxation system applies.
Mining
Crypto mining is very popular and rapidly growing in Russia, making the country one of the world’s largest mining hubs. Russia ranks second globally in total mining power capacity, with over 2.5 gigawatts of mining energy consumption reported in early 2023, doubling from previous years. This growth is fueled by abundant cheap electricity and favorable climate conditions in regions like Irkutsk. The sector experienced a surge in demand for industrial mining equipment, with sales tripling in the last quarter of 2024 compared to the previous year. This boom followed new laws enacted in November 2024 that legalized crypto mining for businesses and entrepreneurs who register with the national miners’ registry, while individuals consuming less than 6,000 kWh monthly can mine without registration. Mining is seen as a credible and economically viable business and investment opportunity, with experts recommending that qualified investors allocate up to 5% of their portfolios to mining and digital currencies.
However, mining is banned in 10 Russian regions (including Dagestan, Chechnya, and several others) from 2025 to 2031 due to energy shortages and infrastructure concerns. Seasonal restrictions also apply in some Siberian regions during winter to prevent electricity blackouts. The future of crypto legislation in Russia is focused on creating a comprehensive, tightly regulated framework that balances innovation with security and control. Russia is planning to strengthen crypto regulations by requiring all crypto platforms to register with the Bank of Russia and obtain a Virtual Asset Service Provider license. This will enforce compliance with anti-money laundering and counter-terrorism financing rules.
