Russia has recently finalized a draft bill to legalize and regulate cryptocurrency trading within the country, marking a significant shift toward broader acceptance of digital assets.
This development builds on the Bank of Russia’s framework announced in late December 2025, which proposed allowing both qualified (professional) and non-qualified (retail) investors to buy cryptocurrencies under strict conditions.
The new draft legislation, confirmed in mid-January 2026 by Anatoly Aksakov (Chairman of the State Duma’s Committee on Financial Markets), aims to remove cryptocurrencies from “special financial regulation” and integrate them more normally into the economy as investment assets.
Register for Tekedia Mini-MBA edition 19 (Feb 9 – May 2, 2026).
Register for Tekedia AI in Business Masterclass.
Join Tekedia Capital Syndicate and co-invest in great global startups.
Register for Tekedia AI Lab (class begins Jan 24 2026).
They must pass a knowledge or risk-awareness test and can only buy the most liquid cryptocurrencies e.g., major ones like Bitcoin. Annual purchases are capped at 300,000 rubles approximately $3,800, and transactions must go through a single licensed intermediary.
Unlimited access to most cryptocurrencies excluding anonymous/privacy coins, after passing a risk test. Cryptocurrencies remain banned for domestic payments. They are treated strictly as investment assets, with the ruble staying the sole legal tender inside the country.
The bill supports using crypto for international settlements, cross-border transactions, and attracting foreign capital, helpful amid Western sanctions. It also aims to license exchanges, brokers, and depositories.
The draft is ready for introduction to the State Duma during the spring 2026 session. Legislative changes could be finalized by July 1, 2026, with fuller enforcement including penalties for illegal intermediation potentially starting in 2027.
This represents a pragmatic evolution in Russia’s stance. The country has moved from earlier skepticism and partial bans to controlled legalization, driven by economic pressures, growing domestic crypto use, and the need for alternative financial tools.
While not full deregulation, it’s a step that could boost Russia’s crypto market, mining sector, and international trade utility. The news has circulated widely in crypto communities and media, with some viewing it as bullish for global adoption.
However, strict limits and ongoing bans on privacy coins and domestic payments keep it cautious rather than permissive. Russia plays a major role in global cryptocurrency mining, particularly Bitcoin mining, leveraging its vast natural resources, low energy costs, and cold climate to become one of the world’s top mining hubs.
Legal and Regulatory Framework
Russia fully legalized cryptocurrency mining in late 2024, with President Vladimir Putin signing laws that took effect from November 1, 2024. This shifted mining from a legal gray area to a regulated activity.
Only Russian legal entities and individual entrepreneurs can register in a national registry, maintained by the Ministry of Digital Development, Federal Tax Service, and others to operate large-scale or commercial mining.
Individuals can mine without registration if they stay within government-set energy consumption limits. Foreign entities are prohibited from mining in Russia. Miners must report details e.g., wallet addresses, mined amounts for oversight, taxation, and anti-money laundering purposes.
The government can impose regional bans or restrictions in areas with energy shortages parts of Siberia like Irkutsk — the “mining capital” — and others up to 2031; some seasonal bans upgraded to year-round in 2026 in connected regions. Unregistered or illegal mining faces penalties— proposed in late 2025 drafts: fines up to millions of rubles, forced labor, or up to 5 years imprisonment for large-scale violations.
This framework aims to formalize the industry, curb electricity theft and grid strain, collect taxes, and treat mining as a legitimate “export” activity — especially valuable amid Western sanctions. Russia holds approximately 15-16% of the global Bitcoin hashrate around 160-175 EH/s out of a total global hashrate exceeding 1 ZH/s.
This places Russia consistently as the second-largest mining country behind the United States, which holds ~37-38%. Growth has been rapid: Mining farms increased ~44% in 2025 to nearly 197,000, with power capacity recovering toward 2.1-2.2 GW peaks expected in 2026.
Russia mined tens of thousands of BTC annually at low costs— $39,000 per BTC vs. much higher market prices at times, thanks to cheap hydropower, natural gas, and surplus energy in regions like Siberia.
Abundant cheap electricity from hydro, gas flaring, etc. and natural cooling reduce operational costs, making Russia highly competitive. Mining generates foreign currency via exported BTC or related revenue, strengthening the ruble.
Russia’s Central Bank governor, Elvira Nabiullina has called it an “undervalued export” and a factor in ruble stability. It contributes ~0.5% to GDP in some estimates, attracts investment including from energy giants like Gazprom Neft, and supports industrial-scale operations.
Rogue and illegal miners persist, many unregistered, regional energy deficits lead to bans, and enforcement tightens in 2026.
Russia’s mining sector has evolved into a pragmatic, state-supported industry: regulated but encouraged for economic benefits, export revenue, and bypassing sanctions — positioning the country as a key player in the global crypto ecosystem, even as broader crypto trading regulations remain cautious on domestic use.