Putin signs landmark crypto law allowing regulated retail trading in Russia
The law continues to ban the use of crypto to pay for goods and services within Russia, while allowing use for cross-border settlements.
Russian President Vladimir Putin has signed a landmark piece of legislation formally legalizing regulated retail cryptocurrency trading in the country. The law establishes a legal framework under which Russian citizens and businesses can engage in crypto markets through officially sanctioned channels, marking a significant shift in the country's approach to digital assets.
Until now, Russia's stance on cryptocurrency had remained largely ambiguous, with authorities permitting mining activity while restricting broader usage. The newly signed law continues to prohibit the use of cryptocurrency as a means of payment for goods and services within Russian territory, maintaining the ruble's status as the sole legal tender. However, the legislation notably permits crypto to be used for cross-border settlements, a provision widely seen as a strategic move to circumvent Western financial sanctions imposed following Russia's invasion of Ukraine in 2022.
The development carries significant implications for the global crypto industry. Russia represents one of the world's largest crypto markets by volume of activity, and a clearer regulatory environment could accelerate institutional participation and trading infrastructure development within the country. It may also raise fresh compliance concerns for international exchanges operating in or adjacent to Russian markets.
Market participants and regulators abroad will be closely watching how enforcement of the cross-border settlement provisions unfolds, particularly given ongoing scrutiny from the Financial Action Task Force and Western governments monitoring potential sanctions evasion through digital assets.
Source: The Block
