In anticipation of the digital ruble’s debut next year, Russia is strengthening its legal framework to regulate cryptocurrency transactions more stringently.
These regulatory revisions are making it increasingly difficult for Russian citizens to utilize cryptocurrencies for payments or trading. Such activities now carry a heightened risk of account freezes, asset confiscation, and even potential criminal charges.
Changes to Payment System Law Impacting Russian Crypto P2P
Bits.media, a Russian cryptocurrency news source, recently reported that the federal law “On the National Payment System” now grants banks the power to restrict access to a client’s bank account if suspicious activity is detected.
The media outlet emphasized that accounts may be blocked if funds connected to illicit activities are deposited. They warned that users of cryptocurrency exchange platforms and those engaging in peer-to-peer (P2P) transactions are particularly vulnerable.
This updated legislation provides financial institutions with the authority to take action under several scenarios. These include receiving complaints from external parties, indications of illegal actions like fraudulent activity, and any transactions that trigger risk detection systems.
Restrictions can be either partial or complete. A partial restriction might prevent an individual from using payment cards and the banking application of a specific institution. A complete restriction would deny access to cards issued by all banks and their respective platforms.
The updated law can be used against cryptocurrency traders, potentially leading to their bank accounts being blacklisted by the Central Bank of Russia (CBR). Common situations involve exchanging digital assets for rubles or engaging in P2P swaps.
The report highlights that anyone selling crypto for traditional currency through online exchangers or P2P platforms risks receiving funds from fraudulent schemes, money laundering operations, illegal online gambling, or other illicit activities.
Moscow Using Anti-Money Laundering Laws to Limit Crypto Use
Under the law “On combating the legalization of proceeds from crime and the financing of terrorism,” also known as the “money laundering law,” Russian banks can also freeze accounts. It allows them to label as “high-risk” and block any cryptocurrency sale through P2P platforms and digital asset exchanges.
Originally, some of the law’s language was designed to combat “dropping,” a Russian term for individuals who allow fraudsters to use their bank accounts, wallets, or cards to launder illegally obtained funds.
Critics argue that these provisions can be misapplied to ordinary users of cryptocurrency exchanges and P2P trading platforms, potentially leading to the blocking of their bank accounts by financial institutions.
In May, legal experts in the crypto sector cautioned that recent changes to the Criminal Code targeting “droppers” or “money mules” could also be used to threaten cryptocurrency traders with account blocks and even imprisonment.
In June, the Bank of Russia called on commercial banks to strengthen their oversight of crypto-related transfers, demanding that they quickly identify such transactions. The updated regulations permit banks to set monthly limits on transfers and prevent cash deposits.
Russia Prepares the Ground for Launching the Digital Ruble
Russia’s recent crackdown on decentralized digital currencies aligns with its preparations for the full rollout of its digital ruble. The CBR recently announced the timeline for the phased introduction of the central bank digital currency, slated to commence on September 1, 2026, following President Putin’s encouragement for widespread adoption.
In conjunction with the state-backed digital currency, Russia intends to introduce a universal QR code system for payments. The country’s monetary authority has consistently opposed the use of cryptocurrencies like Bitcoin for commercial transactions within its borders.
Cryptocurrency payments are permissible only within a specialized “experimental legal regime” designed to assist Russian businesses in circumventing financial limitations in international trade. The law “On Digital Financial Assets,” enacted in 2021, prohibited the use of cryptocurrency as a method of payment.
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