Cryptocurrency in Russia: Status, Regulations, and How to Use It

Legal Status of Cryptocurrency in Russia

Is Cryptocurrency Legal in Russia?

Cryptocurrency is legal in Russia, but it comes with certain restrictions. Since 2021, under the “On Digital Financial Assets” law (No. 259-FZ), digital currencies are recognized as property. This allows you to conduct transactions with them, but prohibits their use as a method of payment within the country. In practice, you can buy, sell, and hold cryptocurrency, but you cannot use it to pay for goods or services in Russia.

The legislation underwent major updates in 2024. In August, President Vladimir Putin signed laws that legalized mining and permitted cross-border cryptocurrency settlements under an experimental legal regime (ELR) supervised by the Central Bank. These updates increased transparency in the market, but also introduced strict requirements for miners and traders.

Cryptocurrency Ban in Russia: Myth or Reality?

Rumors of a total cryptocurrency ban in Russia surface periodically, especially after the Central Bank’s 2022 proposal to prohibit mining and digital asset circulation. However, there is currently no such ban. Instead, the government regulates the market to control fund flows and minimize money laundering risks. For example, starting November 1, 2024, mining is officially permitted for legal entities and sole proprietors registered with the Ministry of Digital Development, and individuals can mine within a 6,000 kWh per month energy consumption limit.

Misconceptions about bans are often tied to restrictions: cryptocurrency is not a legal payment method, and advertising digital assets has been banned since 2024 to fight fraud. Still, buying, selling, and trading on exchanges remain accessible.

Official Cryptocurrency Status in Russia: Current Overview

Currently, cryptocurrency is considered property in Russia, and its circulation is governed by:

• Law No. 259-FZ: Defines digital assets as property.
• Mining Laws (2024): Legalize mining with registration and operational limits.
• Tax Law (2024): Introduces personal income tax (13–15%) for individuals and a profit tax (25% starting 2025) for legal entities.
• ELR: Permits cross-border settlements and trading for qualified investors.

These laws establish the legal foundation, but the market continues to evolve. For instance, the Ministry of Justice has proposed including “cryptocurrency” in the Criminal and Criminal Procedure Codes to enable asset seizure in criminal cases.

How to Buy Cryptocurrency in Russia

How to Buy Cryptocurrency in Russia

Buying cryptocurrency in Russia is more straightforward than it may seem. The main options are:

1. Crypto Exchanges: Platforms offering convenient interfaces for purchasing crypto with fiat or other assets.
2. P2P Platforms: Allow you to buy cryptocurrency directly from other users, often using rubles.
3. Crypto Exchangers: Services that quickly exchange rubles for cryptocurrency, usually at higher fees.
4. Cryptomats: Terminals for cryptocurrency purchases available in some cities.

The most reliable and user-friendly method is to use established exchanges.

Can You Buy Cryptocurrency with Rubles?

Yes, you can purchase cryptocurrency with rubles, but there are restrictions. Due to sanctions, many foreign exchanges do not support direct transfers from Russian cards. However, alternatives exist:

• P2P Trading: You can buy cryptocurrency (such as USDT) for rubles via P2P, sending funds to the seller’s card.
• Exchangers: Platforms like BestChange let you convert rubles to cryptocurrency through bank transfers.
• Crypto Wallets: Some wallets (like Trust Wallet) support purchases through third-party services.

For security, always use trusted platforms and avoid questionable exchangers.

Where and How to Buy Cryptocurrency Officially

You can officially acquire cryptocurrency in Russia through international exchanges serving Russian users, offering:

• Zero spot trading fees.
• P2P trading for ruble purchases.
• Wide variety of pairs: Over 2,000 cryptocurrencies, including BTC, ETH, USDT.

Step-by-Step Guide

1. Register and complete verification.
2. Fund your account via P2P (e.g., transfer to seller’s card).
3. Buy cryptocurrency (BTC, ETH) on the spot market.
4. Store assets on the exchange or transfer to a wallet (MetaMask, Trust Wallet).

Selling and Withdrawing Cryptocurrency

How to Sell and Withdraw Cryptocurrency Safely

Selling and withdrawing cryptocurrency in Russia requires caution due to sanctions and regulatory oversight. Main steps:

1. Sell on Exchange: Sell cryptocurrency for USDT, then convert to rubles via P2P.
2. Withdraw Rubles: Transfer rubles to a Russian card through a P2P seller.
3. Wallets: Use cold wallets (Ledger, Trezor) for secure storage before selling.

Security Tips

• Check P2P sellers’ reputations (reviews, ratings).
• Avoid sending funds to unverified wallets.
• Declare your income to prevent issues with the tax authority.

Trusted Crypto Exchangers in Russia

Exchangers offer an alternative way to sell cryptocurrency. Reliable services include:

• 60cek: Fast exchanges supporting Russian banks.
• NetEx24: Low fees, SBP support.
• Baksman: High reputation, 24/7 customer service.

However, exchanges are generally preferred for greater transparency and lower fees.

Is Cryptocurrency Arbitrage Legal in Russia?

Arbitrage—buying cryptocurrency on one platform and selling it on another for profit—is legal if you pay taxes on earnings. However:

• Risks: High volatility and fees can reduce profits.
• Oversight: The tax authority may request documentation of your income sources.

Exchanges and Banks: Trading Infrastructure

Popular Crypto Exchanges in Russia

Despite sanctions, Russians actively use international exchanges. Popular platforms include:

• MEXC: Zero spot trading fees, P2P trading, 2,000+ assets.
• Bybit: Easy-to-use interface, spot and derivatives trading.
• Deribit: Focuses on derivatives, no fiat support.
• Leading Crypto Exchanges: High trading volumes, P2P trading without rubles.

How Do Banks Operate with Cryptocurrency in Russia?

Russian banks do not interact directly with cryptocurrency due to the Central Bank’s ban on digital assets as a payment method. However:

• P2P Transfers: Banks (Tinkoff, Sber) are used for transfers when buying/selling through P2P mechanisms.
• Account Blocking: Some banks may freeze accounts under Law 115 for suspicious activity.
• ELR: In the experimental regime, banks may take part in cross-border settlements.

To reduce risks, use exchanges and declare all income.

Where to Trade Cryptocurrency Safely and Conveniently

You can trade safely on exchanges that offer:

• Two-factor authentication (2FA).
• Cold asset storage.
• Transparent reputations.

Tip: Start with small amounts and test withdrawals before scaling up.

Taxes and Liability

How to Pay Cryptocurrency Taxes in Russia

Starting in early 2025, Russia’s cryptocurrency tax law takes effect:

• Individuals: Pay personal income tax (13% on income up to 2.4 million rubles, 15% above that).
• Legal Entities: Profit tax (25% from 2025).
• Miners: Taxed as personal income or profit, but no VAT imposed.

Income is calculated as the difference between the sale and purchase prices. Market rates are determined by foreign exchanges with daily volumes over 100 million rubles.

Step-by-Step Tax Process

1. Track all purchases and sales (e.g., in Excel).
2. Submit a 3-NDFL tax return by April 30 of the following year.
3. Pay the tax by July 15.

Consequences for Tax Evasion

Tax evasion may result in:

• Fines: 20–40% of the unpaid amount (Article 122, Russian Tax Code).
• Tax Authority Audits: Exchanges must provide transaction data.
• Criminal Liability: For large amounts (from 2.7 million rubles), penalties can include up to seven years in prison (Article 198, Russian Criminal Code).

For transparency and safety, declare income and use exchanges for your transactions.

Cryptocurrency Taxation: Key Rules

• Mining: Taxed at receipt as personal income or profit.
• Sale: Taxed on profit, but expense deductions are allowed.
• Restrictions: Simplified tax regimes (STS, ATS, UAT, PAT) cannot be applied to crypto operations.

How to Use Cryptocurrency in Russia

Paying with Cryptocurrency: What’s Allowed

You cannot pay for goods and services with cryptocurrency in Russia. However:

• Cross-border settlements: Under the ELR, companies may use cryptocurrency for international payments.
• Barter: Legal entities can enter into barter deals, transferring cryptocurrency for goods.

Can Individuals Trade Cryptocurrency?

Individuals can freely trade cryptocurrency on exchanges as long as they pay applicable taxes. Restrictions apply only to advertising and the use of cryptocurrency as a payment method.

Where and How Can You Pay with Cryptocurrency?

In Russia, you cannot pay with cryptocurrency, but abroad it is possible in countries where it is legalized (such as Japan and Switzerland). To do so, use wallets (MetaMask) or crypto exchange-issued cards.

Mining and Technical Infrastructure

Is Mining Legal in Russia?

Mining becomes legal on November 1, 2024:

• Legal entities and sole proprietors: Must register with the Ministry of Digital Development.
• Individuals: May mine without registration but are limited to 6,000 kWh per month.
• Bans: Mining is prohibited in nine regions (such as Dagestan and DPR) and during the heating season in some areas.

Which Cryptocurrencies Are Used in Russia?

In Russia, the most commonly mined and traded cryptocurrencies include:

• Bitcoin (BTC): The most capitalized cryptocurrency.
• Ethereum (ETH): Leading in DeFi and NFTs.
• Toncoin (TON): Popular in Russia due to Telegram integration.

Exchange and Transfer Networks: How to Make Transactions

For transactions, use:

• Wallets: MetaMask and Trust Wallet for holding and transferring assets.
• Exchanges: For trading and withdrawals.
• Blockchains: Ethereum, BNB Chain, and TON for fast transfers.

The Future of Cryptocurrency in Russia

Expected Changes in the Crypto Market

In the coming period, expect:

• Increased regulation: Expansion of the ELR and tighter exchange controls.
• Digital ruble: Further development and broader usage, but it will not replace cryptocurrencies.
• Mining: Redistribution of mining capacity due to regional bans.

Why Do Russians Use Cryptocurrency?

In Russia, cryptocurrency is used for:

• Investment: Hedge against inflation.
• Cross-border payments: Circumventing sanctions under the ELR.
• Web3: Participation in DeFi, NFT, and metaverse projects.

Cryptocurrency Made Easy

A Beginner’s Guide: How It Works

Cryptocurrency is digital money operating on a blockchain. A blockchain is a decentralized ledger that records all transactions. For example:

• Bitcoin: The first cryptocurrency, designed as an alternative to fiat money.
• Ethereum: A platform for smart contracts and decentralized apps (dApps).

You can buy cryptocurrency on exchanges, store it in wallets, and invest in it.

Why Cryptocurrency Is More Than Just Speculation

Cryptocurrency represents:

• Technology: Blockchain delivers transparency and security.
• Economy: DeFi provides alternatives to traditional banks; NFTs redefine digital art.
• The Future: Web3 is building a decentralized Internet.

Conclusion: Market and Outlook

Current State of Russia’s Crypto Market

Russia currently generates up to 28% of global crypto exchange traffic. The market is expanding thanks to:

• Legalization of mining.
• ELR for cross-border settlements.
• Rising Web3 adoption.

Impact of Sanctions, Restrictions, and Regulation

Sanctions have made it harder to work with fiat, but P2P trading addresses this challenge. Regulation has increased market transparency but also heightened the tax burden.

Web3 Outlook and the Government’s Role

Web3 (the decentralized Internet) is developing slowly in Russia due to regulatory barriers, but projects on TON and Ethereum are gaining traction. The government supports asset tokenization (RWA) and the digital ruble but restricts widespread adoption of cryptocurrencies.

FAQ

What is the legal status of cryptocurrency in Russia? Is it legal to use cryptocurrency?

In Russia, holding cryptocurrency is legal, but using it to pay for goods and services is prohibited. The government has imposed strict rules on the use of digital assets for payments.

What are the regulatory rules and restrictions on cryptocurrency trading in Russia?

Russia sets an annual cap of 300,000 rubles for crypto purchases by non-qualified investors. All trades must be conducted through approved intermediaries. Investor classification is a key regulatory requirement.

How can Russian residents legally buy and trade cryptocurrency?

Russian residents may purchase cryptocurrency through licensed intermediaries or foreign accounts. All transactions must be declared for tax purposes. Starting in 2026, new legislation will officially regulate the crypto market for individuals and institutions.

Do you have to pay taxes on cryptocurrency in Russia? How does the tax policy work?

Yes, cryptocurrency transactions in Russia are subject to personal income tax at 13%. Profits from selling, mining, and trading cryptocurrency are considered capital income. Companies pay corporate profit tax. Importing mining equipment is subject to customs duties.

Which crypto exchanges are banned or restricted in Russia?

Russia restricts access to certain international exchanges (such as Binance) due to sanctions, but users still utilize P2P trading. Local platforms like Garantex remain operational. Users are adapting through decentralized solutions and payment systems.

What is the Central Bank of Russia’s stance on cryptocurrency and its policy?

The Central Bank of Russia has proposed banning cryptocurrencies, while other government bodies favor regulation over prohibition. President Putin supports crypto mining, citing Russia’s advantages in energy and technical talent.

Is it legal to use cryptocurrency for payment of goods and services in Russia?

Using cryptocurrency to pay for goods and services is prohibited by law in Russia. Holding cryptocurrency is allowed, but all crypto payment transactions are illegal.

What are Russia’s regulations on cryptocurrency mining?

Russia only permits approved entities to operate mining businesses, and individuals with financial crime records are barred from participation. Miners are required to report their monthly income, and a national miner registration system is in place for greater regulatory oversight.