The Central Bank of Russia (CBR) has announced a sweeping new regulatory framework that will prohibit citizens from exchanging cryptocurrency for physical cash. The rules, set to be enforced by July 1, 2026, mandate that all crypto-to-fiat transactions must be conducted through non-cash, electronic methods.
First Deputy Chairman Vladimir Chistyukhin detailed the policy in an interview with RBC Radio, stating that converting crypto into paper rubles "won't work in Russia." He emphasized the measure is designed to strengthen state control over financial flows involving digital assets and prevent dubious transactions, drawing a parallel to the existing cashless system for securities trading.
The regulations are part of the draft law "On Digital Currency and Digital Rights," jointly developed by the CBR and the Ministry of Finance and recently submitted to the State Duma. The legislation aims to build a domestic crypto infrastructure, including licensed exchanges and depositories, and bring an estimated 50 billion rubles (over $600 million) in daily crypto transactions by Russian residents into a legal and visible framework.
A licensing regime will be introduced for crypto market participants. Chistyukhin described the license as "very simple" but acknowledged it would entail additional costs for businesses. A transitional period will be provided for existing platforms to legalize their operations. "All companies that conduct transactions in violation of or without a license will be severely punished," Chistyukhin warned.
Initially, licensed exchanges will be permitted to work with the most liquid cryptocurrencies: Bitcoin (BTC), Ethereum (ETH), and Tether (USDT). The CBR retains the authority to expand this list. Digital depositories, which must be Russian entities registered with the central bank, will maintain records of clients' digital asset rights.
While most transactions will be permitted, the use of cryptocurrency as a means of payment for goods and services within Russia will remain prohibited. "It's obvious that cryptocurrencies cannot be used as a means of payment," Chistyukhin stated. However, cross-border transfers will be allowed under the condition that they occur between custodial wallets on both ends. Transfers from custodial to non-custodial wallets will not be permitted. Russian citizens will be required to notify the Federal Tax Service of their crypto holdings but will be allowed to keep assets in any wallet type.
