Key Takeaways
- On July 21, 2026, the lower house of the Russian parliament (Duma) officially passed the country’s first comprehensive legislation legalizing and regulating cryptocurrency transactions.
- The bill, titled “On Digital Currency and Digital Rights,” was passed into law and will come into effect on September 1, 2026.
- As per the law, unlicensed cryptocurrency platforms will not be permitted to function, and local banks must refuse transfers to unauthorized entities.
- In Russia, all digital assets, including cryptocurrencies, are classified as property.
- Individuals pay personal income tax at 13% to 15%, whereas corporates and miners face a 25% profit tax and are taxed on the market value of mined coins.
On July 21, 2026, the lower house of the Russian parliament (Duma) officially passed the country’s first comprehensive legislation legalizing and regulating cryptocurrency transactions. The regulatory framework creates legal structures for crypto exchanges, depositories, and international trade settlements.
The bill, titled “On Digital Currency and Digital Rights,” was passed into law and will come into effect on September 1, 2026, though unregistered firms are given a grace period to continue operating until July 1, 2027. It was originally scheduled to be passed on July 1; however, the administrative delays and poor coordination among legislators pushed the event further.
Key Details of the Legislation
The law legalizes the use of cryptocurrencies like Bitcoin (BTC) and stablecoins for cross-border transactions. It provides Russian businesses with an official channel to bypass sanctions and settle foreign trade. Cryptocurrencies are classified as legal property, but they remain strictly prohibited for purchasing goods or services within Russia. The Russian Ruble remains the sole legal tender. Non-accredited or retail investors face a strict annual purchase limit of $3,800 worth of cryptocurrencies (~300,000 rubles) when using licensed Russian intermediaries, while accredited investors are free from these caps.
Only organizations that have registered in a special registry monitored by the Bank of Russia will be allowed to operate as cryptocurrency exchanges or custodians. As per the law, unlicensed cryptocurrency platforms will not be permitted to function, and local banks must refuse transfers to unauthorized entities.
Impact of the Legislation on International Trade Settlements
The primary strategic goal of the new legislative framework regarding cryptocurrency transactions is establishing state-sanctioned channels to bypass Western financial blocks. Russian businesses can now legally use Bitcoin, stablecoins, and other mined cryptocurrencies to pay foreign suppliers. This law exempts international trade from the domestic crypto payment ban.
The law mandates foreign wallet reporting. Starting September 1, 2026, Russian companies must formally report all fund movements in foreign crypto wallets to tax authorities. To comply with anti-money laundering (AML) controls, this new law makes it mandatory that large cross-border crypto transfers are subject to a 48-hour compliance verification delay. By July 1, 2027, all fiat-to-crypto conversions for trade must route exclusively through platforms licensed by the Bank of Russia.
Tax Treatment of Digital Assets in Russia
In Russia, all digital assets, including cryptocurrencies, are classified as property. Individuals pay personal income tax (NDFL) at progressive rates ranging from 13% to 15% on net gains. Corporate entities and individual miners face a 25% profit tax and are taxed on the market value of mined coins.
Regarding individual taxation in Russia, capital gains from crypto trading and transactions are taxed at standard individual income tax rates of 13% to 15%. Investment income over RUB 5 million is generally subject to a 15% cap. The taxable base is calculated as the positive difference between income (sales proceeds) and allowable expenses (acquisition costs and exchange fees. The proposed State Duma legislative amendments require licensed crypto exchanges to act as tax agents by automatically withholding personal income tax directly when users buy or sell digital assets.
Legal entities and individual entrepreneurs involved in mining or general cryptocurrency sales are subject to a 25% profit tax. Mined digital currencies are explicitly regulated and recognized as taxable income in Russia based on their market value at the time the miner acquires the right to dispose of them. Corporate entities engaged in crypto mining are restricted to the general taxation system and are prohibited from using simplified or preferential tax regimes, like USN, AUSN, or ESHN. Crypto issuers and information system operators are exempt from value-added tax (VAT) on the issuance of digital assets.
Tax Reporting Requirements and Restrictions
Russian taxpayers must declare their digital currency holdings and income to the Federal Tax Service (FTS). Transactions above RUB 600,000 must be reported for anti-money laundering monitoring. While ownership and trading of cryptocurrencies are legalized as per the latest law, cryptocurrency cannot be used as a means of payment for domestic goods and services within Russia. However, digital currency is permitted for use in cross-border trade settlements to navigate international economic sanctions.
The Bottom Line
The “On Digital Currency and Digital Rights” bill passed into law by the russian parliament is a landmark event, which will pave the way for a digital currency revolution in the country. This law legalizes crypto for cross-border trade, establishing regulated exchanges to bypass Western sanctions while prohibiting domestic crypto payments. Russians can now get involved in state-sanctioned transactions and controlled usage to support international transactions. The law will make the country a part of the global crypto industry and compete with other giants such as the US.