Russian President Vladimir Putin has signed into law a comprehensive legislative package that fundamentally reshapes the country's approach to digital assets. The new law, approved in late February 2026, amends both the Criminal Code and the Criminal Procedural Code, legally classifying cryptocurrencies as "intangible property." This reclassification grants Russian courts the authority to seize and confiscate digital assets in criminal cases, marking a significant step in Moscow's effort to tighten state control over the crypto sector.
The confiscation mechanism is detailed and far-reaching. Investigators must document the specific cryptocurrency type, quantity, and wallet addresses involved. Authorities are empowered to confiscate physical devices like servers, computers, and hardware wallets. Where technically feasible, officials can transfer seized coins to government-controlled wallets. The law also creates a formal pathway for Russian agencies to request cooperation from foreign crypto exchanges to freeze or retrieve assets, with the legislation set to enter force ten days after official publication.
This enforcement measure is part of a broader regulatory overhaul. A sweeping national crypto framework is scheduled for completion by July 1, 2026, transitioning Russia to a permanent two-tier oversight system. Retail investors classified as "non-qualified" will face strict annual purchase caps of 300,000 rubles (approximately $4,000). Their access will be limited to high-liquidity tokens like Bitcoin and Ethereum, with other large-cap assets such as Solana or TON potentially eligible pending central bank approval. Qualified investors, while exempt from volume limits, will be barred from trading privacy coins like Monero, Zcash, and Dash. All participants will likely need to pass a mandatory risk-awareness test.
The legislation imposes stringent requirements on intermediaries. All exchanges, brokers, and crypto trust managers must obtain special domestic licenses. Major Russian financial institutions, including the Moscow Exchange, are preparing to launch regulated crypto services. Starting July 2026, Russia's internet regulator is expected to block foreign exchanges that fail to establish local subsidiaries or register domestically. By July 1, 2027, unlicensed intermediary activity will carry criminal penalties, including heavy fines and prison terms of up to seven years for organized violations. Authorities aim to redirect an estimated $15 billion in annual transaction fees from foreign platforms back into the domestic system.
While maintaining the ban on using cryptocurrency for domestic payments—a restriction first introduced in 2021—the law introduces a notable shift. Digital assets and stablecoins may now be used legally for cross-border settlements and foreign trade operations. Russian residents can still purchase crypto through foreign accounts but must report such holdings to the Federal Tax Service.
Implementation faces challenges, particularly in proving wallet ownership due to blockchain anonymity and offshore platforms. Cooperation is expected to be more effective with exchanges operating within Russia or in allied jurisdictions like China or CIS countries. Decentralized exchanges pose a particular enforcement challenge, with experts suggesting regulators may eventually consider blocking access to them if enforcement proves ineffective.