Russia’s crypto confiscation law is set to increase pressure on individuals and businesses using digital currencies for local transactions. A new bill, jointly proposed by the Ministry of Finance and the Central Bank of Russia, outlines strict penalties—including fines and asset seizure—for anyone caught using crypto as a means of payment within the country.
According to the draft, individuals could face fines of up to 200,000 rubles, while businesses may be fined as much as 1 million rubles (approximately $12,500). Crucially, the bill also enables the confiscation of crypto assets involved in prohibited local payments.
Not New, But Stronger: Reinforcing Russia’s Crypto Ban
Andrey Medvedev, Director of Legal Regulation at the Central Bank, clarified that Russia’s crypto confiscation law does not introduce a new ban. Instead, it formalizes and strengthens existing restrictions already in place.
“The bill supplements current rules with clear enforcement mechanisms,” said Medvedev.
This means that using Bitcoin or other cryptocurrencies for purchasing goods, services, or peer-to-peer transactions inside Russia remains strictly prohibited under the updated framework.
Cross-Border Crypto Payments Remain an Exception
Interestingly, while domestic crypto usage is being criminalized, Russian authorities are working on a separate regulatory sandbox for international crypto transactions. The initiative includes plans for a national crypto exchange to facilitate foreign trade deals, especially in light of ongoing sanctions.
The platform is being developed under the supervision of the Ministry of Finance and the Ministry of Economic Development and is aimed primarily at large exporters and sanctioned entities.
Regulators Warn: Crypto Is Not Anonymous
Russian officials are also cracking down on the myth of crypto anonymity. Olga Tisen, head of Rosfinmonitoring’s legal department, stated that most crypto exchanges operating in Russia cooperate with law enforcement, making it risky for users to assume their transactions are untraceable.
The message from the state is clear: while Russia may explore crypto in cross-border use, local payments using digital assets will be punished—harshly.
