Key Highlights
- Russia will require strict identity checks (KYC) for anyone using domestic crypto services and exchanges.
- Crypto transfers will be tightly controlled, with users required to route funds through approved Russian platforms.
- The government is building a regulated system where all crypto trading goes through licensed intermediaries and is limited to retail investors.
Russia’s central bank, together with regulators, is preparing new cryptocurrency rules expected to take effect from July 2026.
According to a local outlet, the new rules are expected to give the government more control over how people use crypto and to track both local and foreign crypto holdings through approved platforms and tax reports.
New strict crypto control rules
The central bank wants anyone using Russian crypto services to first prove their identity through Know-Your-Customer (KYC) checks. This system confirms a user’s identity using documents such as ID cards or passports. The regulator also plans to block withdrawals of cryptocurrency from wallets operated by Russian firms unless these identity checks are completed.
Vladimir Chistyukhin, the first deputy chair of the central bank, said, “No one is trying to stop Russian individuals and legal entities from continuing to hold cryptocurrency in foreign wallets. The only fundamental requirement we have is that they declare [these holdings] to the Federal Tax Service.”
Tracking offshore crypto and wallet transfers
Authorities say the proposed rules are meant to reduce anonymous crypto activity by requiring domestic exchanges to apply KYC protocols that make transactions traceable to verified individuals. In short, regulators want to be able to track Russian citizens’ offshore crypto holdings, as many users currently store assets in foreign wallets.
Under the proposed framework, the central bank aims to restrict transfers from Russian custodial wallets to non-custodial wallets located abroad. It also plans to require users moving funds from overseas exchanges into non-custodial wallets to first route them through official Russian cryptocurrency exchanges and custodians.
These platforms would be legally required to verify all customers before allowing transactions if the central bank’s proposal is approved.
The regulator said transfers from “permit-holding Russian intermediaries” to global exchanges such as Binance or Bybit will not be blocked. However, it wants to prevent untracked movement of funds that could make financial flows harder to monitor.
Chistyukhin said that crypto held by Russian citizens will not be seized or restricted. “Nothing will happen to [Russian citizens’] coins. They belong to Russian residents, and that will remain the case. There will be no penalties for possession, and no restrictions on the use of these coins,” he said.
Wider crypto regulation
This is part of the country’s broader framework to centralize cryptocurrency trading under licensed intermediaries, including exchanges, brokers, and custodians.
Authorities have previously mentioned that the system will require all crypto transactions to pass through approved platforms. It would also remove informal peer-to-peer trading inside the country.
As a result, retail investors may face limitations in their annual investment caps, while qualified investors would not face these restrictions. Russian residents would still be allowed to use foreign exchanges, but would be required to report such activity to the Federal Tax Service.
The government also plans to let banks and other financial institutions offer crypto services under strict rules. If companies fail to follow these laws, they may face penalties.
Also Read: Pakistan Central Bank Opens Banking Access for Licensed Crypto Firms
