Russia to Legalise and Strictly Regulate Crypto in 2026 — Retail Limits, Privacy Coin Ban, State-Led Infrastructure

The Bank of Russia published a draft crypto framework on 24 December 2025 that formalises a controlled legal route for cryptocurrency trading and tokenisation. Key measures: non‑qualified (retail) investors may buy up to 300,000 RUB (~USD 3,800) per year on licensed platforms after passing a mandatory risk/knowledge test; qualified investors can trade without volume limits after a knowledge assessment. Privacy coins will be banned to ensure traceability. Residents may transfer crypto bought abroad into domestic compliant platforms subject to tax reporting. Existing licensed financial institutions (exchanges, brokers, asset managers, major banks and the national payment system) can provide trading, custody and settlement, creating a closed-loop domestic ecosystem; specialised crypto depositories will face new rules. The proposal expands the Digital Financial Asset (DFA) framework to support tokenised fundraising and potentially state-backed tokens aimed at cross‑border use to mitigate sanctions. The government intends to finalise rules by 1 July 2026 with compliance required by 1 July 2027; non‑compliance could trigger severe penalties, including criminal liability for brokers. Motivations include stemming capital flight, securing tax revenue, and building sanctioned-resistant payment rails. For traders: expect greater onshore liquidity and faster institutional product development, clearer custody and settlement paths, and more transparent on‑chain flows concentrated among qualified investors and institutions; retail secondary flows will be constrained by testing and the 300,000 RUB cap. Geopolitical and sanction risks remain material and could affect cross‑border volumes, listings (privacy coins delisted) and access to certain assets.