Russia Cryptocurrency Laws: What’s Banned, Allowed, and How It Affects Traders

When it comes to Russia cryptocurrency laws, the rules that define how individuals and businesses can use, trade, and mine digital assets under Russian jurisdiction. Also known as crypto regulations in Russia, these rules are a mix of strict bans and surprising openness—making them one of the most confusing frameworks in the world. Unlike countries that outright ban crypto, Russia lets you hold Bitcoin, trade on exchanges, and even mine coins—but you can’t use them to pay for coffee, rent, or groceries. That’s the core contradiction driving everything else.

It all started in 2020 when the Central Bank of Russia pushed to ban crypto payments, fearing loss of control over financial flows. By April 2021, the ban was official: crypto payments, using digital assets like Bitcoin or Ethereum to buy goods or services directly. Also known as digital currency transactions for commerce, they’re now illegal under Russian law. But here’s the twist: holding crypto, trading it on platforms like Binance or Bybit, and even mining it are still perfectly legal. In fact, Russia became one of the top five countries for Bitcoin mining by 2023, thanks to cheap electricity and relaxed rules for miners. The government even started talking about creating its own crypto mining licensing, a formal system to register and monitor large-scale mining operations under state oversight. Also known as VASP registration for mining, it’s still in draft form but signals a move toward control, not elimination.

Then there’s taxation. Russia doesn’t tax crypto holdings—but if you sell and make a profit, you owe 13% income tax. No one’s enforcing it yet, but the Federal Tax Service has been pushing banks to report crypto-related transactions since 2024. If you’re moving large sums from exchanges to Russian banks, expect questions. And if you’re a business? You need to register as a VASP, a Virtual Asset Service Provider required to comply with anti-money laundering rules. Also known as crypto exchange operator, this applies to anyone running a platform that swaps or holds crypto for others. The rules are still fuzzy, but the message is clear: the state wants visibility, not prohibition.

What does this mean for you? If you’re trading from Russia, you can still buy, sell, and hold crypto without fear of arrest. But if you try to use it like cash, you risk fines or account freezes. If you’re mining, you’re in a gray zone—technically legal, but under growing scrutiny. And if you’re a foreigner sending crypto to Russia? Be careful. The government has blocked dozens of foreign exchanges and now requires all transactions to go through approved Russian gateways.

Below, you’ll find real-world examples of how these laws are playing out—from trading volume drops after new rules to how miners are adapting to licensing demands. No fluff. No theory. Just what’s actually happening on the ground in Russia’s crypto scene right now.