Sberbank, Russia’s largest state-owned bank, is preparing to roll out a cryptocurrency trading system and digital custody services by the end of 2026.
This initiative coincides with Russia’s first comprehensive cryptocurrency bill, passed by the State Duma earlier in July, which establishes licensing requirements for exchanges, brokers, and custody providers under the oversight of the Bank of Russia.
The bill, once enacted, prohibits domestic cryptocurrency payments but legalizes cross-border trade settlements, which reflects Russia’s steps to balancing innovation with control.
Overview of Russia’s Cryptocurrency Bill
On July 21, Russia’s State Duma approved the legislation regulating the circulation of cryptocurrencies and digital rights for the first time.
Lawmakers cleared bill No. 1194918-8, “On Digital Currency and Digital Rights,” in its second and third readings, with the final stage in the chamber. The framework establishes rules for cryptocurrency exchanges, digital depositories, and investors, while also creating a state‑supervised channel for cross‑border trade.
Russia’s Cryptocurrency Regulation Trajectory
The law authorizes the use of cryptocurrency specifically for cross-border trade settlements, providing Russian firms with a mechanism to bypass Western sanctions through:
- Foreign trade contracts between residents and non-residents;
- Coins obtained through mining;
- Paying commissions required by the rules of a given information system; and,
- To settle transactions involving securities, other digital currencies, or digital rights
It strictly prohibits the use of cryptocurrency for any domestic payments, and furthermore, even advertising or promoting the idea of paying for goods, services, or intellectual property with cryptocurrency, reinforcing the ruble as the sole legal tender within Russia.
To limit speculative activity and maintain oversight, the law imposes an annual cap of approximately 300,000 rubles ($3,800) on non-qualified retail investors, while approximately 3,000,000 rubles ($38,000) for qualifies investors, with all transactions required to pass through Bank of Russia–licensed intermediaries.
Only licensed intermediaries approved by the Bank of Russia such as exchanges, brokers, depositories, management companies, and exchangers are allowed to operate. Any platform or service offering crypto trading or custody must meet strict capital requirements, join a self-regulatory organization, and be formally registered.
Unlicensed or offshore platforms will be excluded from the legal market, effectively forcing all legitimate activity into state-supervised channels.
In addition, the law mandates that all holdings be recorded off-chain by licensed custodians. Instead of relying solely on blockchain records, custodians will maintain parallel ledgers under regulatory oversight.
This gives the state a veto over transactions. Authorities can block, freeze, or reverse transfers if they are deemed suspicious or non-compliant.
For investors, this means that even if they hold crypto, their ability to move or use it depends on approval from licensed custodians operating under the Bank of Russia’s rules.
Purpose and Implications for Russia and Counterparties
The bill’s purpose is twofold:
- Domestically – to restrict crypto to protect the ruble and prevent uncontrolled use;
- Internationally – to enable crypto as a sanctioned-proof settlement tool, reducing reliance on the dollar and offering a model for other sanctioned economies.
Russia’s cryptocurrency law builds a parallel financial path outside the western dollar system. By legalizing Bitcoin and crypto for cross-border trade, it offers sanctioned states a model to bypass restrictions. Each transaction reduces reliance on the dollar.
However, success depends on off-ramps:
- If counterparties accept payments, volumes rise;
- If secondary sanctions enforced by western regulators deter counterparties, it remains symbolic.
Russia’s mined Bitcoin also strengthens this cycle, linking energy, mining, and trade.
The next milestones are Federation Council approval, Putin’s signature, and the September 1, 2026, effective date. The real test will be late 2026, when trade volumes reveal whether the system functions at scale.
