Russia

As of late 2025, the regulatory status of retail cryptocurrency trading in Russia is best classified as 'Gray-Zone'. While the act of buying, selling, and holding cryptocurrency is not criminalized for individuals, the government has systematically dismantled the legal infrastructure for domestic retail operations. The foundational Federal Law No. 259-FZ (2021) defined crypto as property but explicitly banned its use for payments. Subsequent amendments in August 2024 reinforced this restrictive approach by banning the advertisement of digital currencies and prohibiting the 'organization of circulation' for the general public. This effectively makes operating a local retail exchange illegal outside of specific experimental frameworks.

The most significant recent development was the package of laws signed by President Putin in August 2024, which legalized cryptocurrency mining and established an 'Experimental Legal Regime' (EPR) for cross-border payments. These laws were driven primarily by the need to bypass Western sanctions in international trade. Under the EPR, authorized entities can facilitate crypto settlements for importers and exporters. However, this regime is designed for institutional players and foreign trade, not for the average retail investor. The Central Bank of Russia (CBR) maintains a strict stance against the 'infection' of the domestic financial system with cryptocurrency, aiming to ring-fence crypto activity to the external sector.

For the retail user, this creates a precarious environment. Since domestic exchanges are effectively banned from serving the mass market, Russian traders must utilize foreign exchanges or peer-to-peer (P2P) platforms. This activity is tolerated but not protected; there is no local licensing regime ensuring consumer safety for retail trading. Furthermore, international sanctions have complicated access, with many global platforms restricting Russian accounts or removing Russian banks from P2P options. Despite these hurdles, ownership remains legal, and the Federal Tax Service actively expects citizens to declare crypto holdings and pay capital gains tax.

Looking ahead, the regulatory trend suggests a bifurcation: a legalized, state-monitored sector for industrial mining and cross-border trade (to support the national economy), and a suppressed, gray-market sector for retail speculation. Proposals to further restrict buying capabilities to 'qualified investors' have been discussed by the CBR but have not yet resulted in a total ban on retail ownership. Consequently, while not outright 'Banned', the lack of legal local gateways and the prohibition on payments place Russia firmly in the 'Gray-Zone'.