Russia's State Duma has enacted a law regulating cryptocurrency exchanges, introducing licensed intermediaries and oversight from the Bank of Russia.
On July 21, the State Duma passed the "On Digital Currencies and Digital Rights" law, marking a significant shift in the regulation of cryptocurrency in Russia. This legislation introduces licensed intermediaries for the first time, enabling the establishment of regulated exchanges and digital depositories, with oversight from the Bank of Russia. The law will come into effect on September 1, 2026, with a transition period lasting until July 1, 2027, during which only regulated entities will be permitted to facilitate cryptocurrency transactions.
During this transition, new criminal provisions will target illegal intermediation, addressing concerns about rising fraud within the cryptocurrency space. As P2P transactions have become the predominant method for buying and selling cryptocurrencies, the Bank of Russia reported a surge in fraudulent activity, with 100,000 new drop accounts being registered monthly as of 2025.
Regulatory Environment Tightens
Peer-to-peer transactions gained popularity due to their simplicity, but the method has drawn the attention of fraudsters, prompting increased scrutiny from banks. The Bank of Russia implemented guidelines to monitor unusual card activities, leading to a significant rise in the number of identified drop accounts.
The latest legislation consolidates various regulations, defining who can participate in cryptocurrency transactions. Only specialized intermediaries, including exchanges and brokers, will be allowed to facilitate digital currency transactions. Investors will be classified as qualified or unqualified, with specific limits set for transactions and transfers. Notably, domestic cryptocurrency transactions will remain prohibited, and stringent monitoring will apply to withdrawals to external wallets.
In an effort to combat fraud, digital depositories will hold transfers above 100,000 rubles for 48 hours and monitor larger transactions. Intermediaries will be liable for losses resulting from fraudulent activities if they fail to halt suspicious transfers.
Challenges and Opportunities
While the law aims to enhance market integrity, it also imposes de-anonymization requirements on licensed platforms, mandating compliance with AML/KYC procedures. This may deter some users who prefer privacy, leading them to seek unregulated alternatives for cryptocurrency transactions.
Services like ONLYP2P, which allows users to sell cryptocurrency for rubles without verification, may continue to attract users despite the regulatory landscape. The platform has gained over 80,000 active users in two years, facilitating quick transactions without the need for registration.
As the market transitions, familiar tools will remain available until the new regulations take full effect, promising legal protections for users. However, the cost of these protections may be increased transparency over transactions, prompting some to continue utilizing services that prioritize privacy.
