It has been emphasized by Russian authorities that the use of cryptocurrency for domestic payments is prohibited, while its potential application in international transactions has been highlighted.
A renewed crackdown on domestic cryptocurrency payments is being intensified by Russian authorities through the introduction of a new bill that proposes severe penalties and the confiscation of digital assets.
Draft legislation has reportedly been jointly submitted by the Ministry of Finance and the Central Bank, proposing that individuals could be fined up to 200,000 rubles and companies up to 1 million rubles (approximately $12,500) for the use of cryptocurrency within Russia, according to local sources.
It was stated by Andrei Medvedev, the legal director of the Russian Central Bank, that the proposed legislation serves to codify current limitations and further affirms the government’s stance that the use of digital assets for domestic payments remains prohibited.
It was noted by Medvedev that, while the existing legal code already acts as a deterrent to such activity, the proposed legislation has been designed to introduce an enforcement framework.
In addition to imposing financial penalties, the authority to confiscate any digital assets involved in these unauthorized transactions has been granted to regulators under the proposed bill.
This action has been taken to reaffirm Russia’s prohibition on the use of cryptocurrency for routine domestic transactions, despite the nation’s continued reliance on digital assets for international trade aimed at circumventing Western sanctions.
Russia Collaborates with Crypto Platforms Amid Regulatory Push
Industry participants have been cautioned by Russian regulators against assuming that the anonymity associated with cryptocurrencies will shield them from legal accountability or enable them to violate domestic laws.
It was stated by Olga Tisen, the head of the legal department at Rosfinmonitoring, that user data is routinely provided by exchanges operating in Russia upon request from the authorities.
It was emphasized by Tisen that such practices are consistent with international compliance standards, countering the widespread assumption that cryptocurrency transactions are entirely anonymous. Binance was cited by her as an example, referencing a dedicated portal on its website designed for communication with Russian law enforcement agencies.
All crypto exchanges and exchangers that have at least one representative office in Russia also interact with law enforcement agencies, providing information about the owner of the crypto wallet.
She said:
The country’s growing oversight of digital assets has been underscored by the approach, even as simultaneous initiatives are being pursued to leverage their potential.
Plans have been initiated by the authorities to establish a national cryptocurrency exchange intended for high-net-worth individuals and cross-border transactions. The proposed platform is expected to function under an experimental legal regime, through which foreign trade participants will be permitted to utilize digital assets in international agreements.
