Russia's Duma Signals Shift on Crypto: Investment Path Opens While Payment Ban Holds Firm

Russia’s regulatory stance on cryptocurrencies appears to be entering a new phase. While the nation maintains its longstanding prohibition on digital assets as payment methods, recent signals from high-level officials suggest the government may be warming to the idea of allowing cryptocurrencies in other capacities—particularly as investment vehicles.

The Current Policy Landscape

According to the Russian state news agency TASS, Anatoly Aksakov, Chairman of the State Duma Committee on Financial Markets, reaffirmed that cryptocurrencies like bitcoin and ethereum will never function as legal tender in Russia. The official stance is clear: digital assets may be categorized as investment tools, but any transactions requiring settlement must use rubles. This prohibition has been codified in law since 2020, when Russia explicitly banned cryptocurrencies as payment instruments.

Yet beneath this firm stance lies a more nuanced reality. Russian companies have reportedly engaged in cross-border cryptocurrency transactions worth billions of dollars, despite domestic payment restrictions. Major financial institutions including Sberbank and VTB have publicly acknowledged rising client demand for cryptocurrency-related services, signaling that market interest continues to grow regardless of regulatory barriers.

Breaking the Years-Long Gridlock

The road to clarity has been lengthy. For years, Russian policymakers have been deadlocked over how to approach the sector, primarily due to conflicting visions between two key agencies. The Central Bank of Russia, under Governor Elvira Nabiullina, has pushed for sweeping restrictions including comprehensive trading and mining bans. The Ministry of Finance, by contrast, has advocated for a regulatory and taxation-based approach rather than outright prohibition.

This institutional divide generated competing legislative proposals ranging from total bans to comprehensive regulatory frameworks. Most initiatives stalled in State Duma committees, leaving the industry in regulatory limbo. However, momentum now appears to be building for change.

A Pragmatic Turn

Recent statements from Moscow suggest a shift in thinking. Russian President Vladimir Putin has publicly acknowledged the success of Russia’s cryptocurrency mining sector, hinting at a more flexible approach to certain industry segments. Within policy circles, officials like Yevgeny Masharov from the Civic Chamber’s Legislative Review Committee have begun emphasizing the need for clear regulatory rules rather than continued prohibition.

Masharov has pointed out that formalized cryptocurrency regulation could expand federal tax revenues and provide law enforcement with enhanced capabilities to combat money laundering and fraud. These arguments suggest that practical considerations—fiscal gains and law enforcement efficiency—are gaining traction alongside ideological positions.

The Red Line Remains

Despite these developments, officials remain united on one principle: cryptocurrencies must never replace the ruble as Russia’s payment system. Aksakov reiterated to TASS that this boundary will not shift, regardless of how other aspects of cryptocurrency regulation evolve. The emerging consensus appears to be that limited cryptocurrency activities—including investment, mining, and certain cross-border uses—may eventually receive regulatory clarity, but the foundation of Russia’s monetary system will remain strictly ruble-based.

As the State Duma continues deliberating, the question is no longer whether cryptocurrencies will be permitted in Russia, but rather in which specific capacities and under what conditions.