Is Crypto Legal in Russia?

Bank of Russia (BoR) – Responsible for monetary policy and financial stability; issues guidelines on virtual currencies.

Federal Law No. 115‑FZ “On Electronic Means of Payment and Electronic Cash” (2016) – Defines electronic means of payment but does not explicitly cover cryptocurrencies; interpreted by BoR to include virtual currencies under certain conditions.

Decree of the President on Combating Illicit Financial Flows (2020) – Mandates reporting of transactions involving virtual assets exceeding 100,000 rubles (~USD 1,200) in a single day.

International Standing: Russia participates in FATF discussions but has not adopted full FATF recommendations for crypto AML/CFT.

Virtual Currency Exchangers and Digital Asset Service Providers (DASP) must obtain a license from the BoR to convert between virtual currencies and fiat or provide wallet services.

No specific monetary threshold in licensing; compliance with anti-money laundering obligations is mandatory.

Application process involves submitting a business plan, proof of capital adequacy (~5 million rubles), and AML/CFT policies.

Timeline: Typically 30–60 days post-submission of complete documentation.

Tokenized Securities Issuers fall under the jurisdiction of the Russian Unified Securities Market (USM) regulator, but no dedicated crypto securities licensing exists as of 2025; issuers must comply with general securities law and may require registration with the FSF (Financial Markets Federation).

Customer Due Diligence (CDD): Identifying customers, verifying identity, and assessing risk levels.

Enhanced Due Diligence (EDD) for politically exposed persons (PEPs) or high-risk jurisdictions.

Suspicious Transaction Reporting (STR) required for transactions exceeding 100,000 rubles or if suspicious activity is detected.

Record Retention: Maintain transaction records for at least five years.

Penalties include fines up to 5% of illegal gains or 50 million rubles (~USD 600,000), and potential suspension or revocation of licenses.

Notable cases involve unlicensed virtual currency exchanges facing fines in 2023–2024 for non-compliance with AML/CFT rules.

Income Tax: Gains from crypto trading are subject to a flat 13% income tax on profits exceeding 1 million rubles annually (effective since 2022).

Capital Gains: Recognized at the date of sale; losses can offset gains.

No specific VAT on crypto transactions as of 2025.

Lack of a dedicated legal framework for tokenized securities and initial coin offerings (ICOs).

Ambiguity around stablecoin regulation and cross-border transactions.

Risk of regulatory arbitrage through offshore entities or unlicensed platforms.

The Bank of Russia requires licensing for virtual currency exchangers and DASPs, with no explicit monetary threshold beyond capital adequacy requirements. Bank of Russia

Russian law imposes AML/CFT obligations on crypto transactions exceeding 100,000 rubles daily, enforced by fines up to 50 million rubles.

No specific legislation governs tokenized securities in Russia as of 2025, leaving issuers under general securities law with potential regulatory uncertainty. Reuters Putin Decree

Putin decree authorises US hedge fund to buy foreign-owned Russian securities | Reuters