Russia approves Bitcoin for international trade to counter Western sanctions

The Russian State Duma approved in the first reading the famous crypto-law bill, legalizing the digital economy under international conditions. The move comes as a direct response to Western sanctions that cut off major Russian banks from global payment systems, including the SWIFT system.

The draft law gave the first reading under the framework of the regulatory proposal of the Central Bank of Russia that was published at the end of December 2025, speeding up the years of discussion of the standard policy and turning it into a permanent law.

The scope of this law is great; Russian exporters and exporters who are trying to move goods in the amount of $ 240 billion in trade and are facing payment problems now have a legal way to settle contracts using digital money. The Kremlin is developing an alternative economic strategy, and the shape of that strategy is being seen for the first time.

The question the market should be asking is not whether the bill will become law, which it will, but how quickly OFAC will move to close the gap opened by the law.

Key requirements:

• Voting section: The Russian Duma passed a draft law on crypto regulation in first reading; The law requires two additional readings in addition to approval by the Federal Council and the President’s signature before it takes effect.
• Basic requirements: The law allows Russian companies to use the digital economy in the international community, while domestic transactions as a means of payment remain prohibited.
• Investor groups: Non-eligible individual investors are subject to an annual purchase cap of 300,000 rubles (about 3,800 US dollars) through any medium; Even qualified investors do not face any restrictions.
• Product Eligibility: Only cryptocurrencies have a market value greater than… 5 trillion rubles (66.6 billion US dollars) It has a five-year trading history, and Bitcoin and Ethereum are expected to be the first currencies to be accepted.
• Time: Trading can be initiated through platforms with licenses in July 1, 2026; Even unlicensed platforms will face a complete ban from the start July 1, 2027.
• places to watch: The Duma’s Competition Protection Committee has already warned of the dangers of excessive regulation, and further amendments are expected before final approval.

What Russian crypto laws allow and what they intentionally prohibit

What is at the center of cryptocurrencies in Russia creates a sharp dividing line: cryptocurrencies are legal for international trade, not for buying coffee in Moscow. Domestic transactions as a means of payment have not yet been confirmed, acknowledging the Bank of Russia’s long-standing concerns about independence and mass flight.

Microfinance is the most important aspect of the home; Unqualified participants are offered more than 300,000 rubles per year through any licensed broker. In contrast, qualified investors, bankers, experienced traders and people with large amounts of money face every problem.

The Bank of Russia stands at the center of the infrastructure, issuing platform licenses, approving or banning transactions, and having the authority to determine which digital assets can be legally traded within Russia’s legal framework.

Eligibility criteria are deliberately limited; Only digital currencies with a market value of more than 5 trillion rubles with a documented history of five years are evaluated. Bitcoin and Ethereum are the first to be identified, which act as a rule of thumb for Bitcoin and Ethereum and the possibility of further expansion in the future. The government also wants to achieve a tax agreement between digital investors and holders of traditional bonds, a sign that Moscow sees regulation of participation in crypto as a legitimate financial category and not a gray area that should be tolerated.

Bitcoin mining and local tracking: what Russian workers are facing now

Along with the process of internationalization, the draft law introduces the first regulation of Bitcoin mining in Russian regions. Miners, whether individuals or corporate entities, must register under an approved system; Work outside of this register will be considered unlicensed work after the July 1, 2027 deadline.

The federal government does not have the power to ban mining operations in areas where there is a lack of electricity, which is intended to protect the national grid during critical times. Russia’s crypto mining sector has grown significantly since China’s 2021 mining ban, and unregulated power outages have become a common infrastructure problem in Siberia and the Far East.

Uzbekistan’s approach, which provides a 10-year tax exemption in a special region with high energy efficiency requirements, provides a different example of how post-Soviet countries are competing with mining.

The State Duma’s Competition Protection Committee has expressed its concern that the strict legal regulations may return, leaving Russian workers and crypto companies with the same wealth that the law was designed to eliminate. The second reading is expected to be a battleground for the proposals.

A note Russia approves Bitcoin for international trade to counter Western sanctions appeared for the first time Cryptonews Arabic.

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