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.
Local sources report that the Ministry of Finance and the Central Bank have jointly submitted draft legislation proposing fines of up to 200,000 rubles for individuals and up to 1 million rubles (approximately $12,500) for companies using cryptocurrency within Russia.
Andrei Medvedev, the legal director of the Russian Central Bank, stated that the proposed legislation codifies existing limitations and reinforces the government’s position that using digital assets for domestic payments remains prohibited.
Medvedev noted that although the current legal code already deters such activity, the proposed legislation aims to establish a formal enforcement framework.
The proposed bill grants regulators the authority to confiscate any digital assets involved in unauthorized transactions, in addition to imposing financial penalties.
Russia has taken this action to reaffirm its prohibition on using cryptocurrency for routine domestic transactions, even as the nation continues relying on digital assets for international trade to circumvent Western sanctions.
Russia Collaborates with Crypto Platforms Amid Regulatory Push
Russian regulators have cautioned industry participants not to assume that cryptocurrency anonymity will protect them from legal accountability or allow them to break domestic laws.
Olga Tisen, head of the legal department at Rosfinmonitoring, stated that exchanges operating in Russia routinely provide user data to authorities upon request.
Tisen emphasized that these practices align with international compliance standards, countering the widespread belief that cryptocurrency transactions are completely anonymous. She cited Binance as an example, noting its dedicated portal 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 approach underscores the country’s growing oversight of digital assets, even as authorities simultaneously pursue initiatives to leverage their potential.
The authorities have initiated plans to establish a national cryptocurrency exchange aimed at high-net-worth individuals and cross-border transactions. They expect the proposed platform to operate under an experimental legal regime that allows foreign trade participants to use digital assets in international agreements.
