The Russian government’s upcoming legislation aims to significantly restrict crypto assets issued by Western companies, potentially channeling billions of dollars from global exchanges to domestic platforms. The new law, predicted to pass the State Duma this coming June, is scheduled to take effect by July 1, 2026. If this framework is implemented, it marks a pivotal shift in Russia’s approach to cryptocurrency regulation.
Why ban specific assets?
Deputy Finance Minister Ivan Chebeskov has detailed that the initiative includes financial mechanisms to guide Russian users away from “unfriendly” digital tokens. These measures could involve imposition of fees or restrictions. The main target: tokens that can be frozen upon foreign authorities’ requests, characterizing them as undesirable under the new policy.
Ivan Chebeskov emphasized, “The bill will include commissions and such economic measures to discourage the use of tokens that foreign regulators can freeze.”
Under the proposed rules, Russian citizens without qualified investor status would be able to trade only Bitcoin, Ethereum, and USDT. Other stablecoins like BNB and dollar-backed tokens would be removed from the list for general investors due to the controlling powers of their issuers to freeze wallets on official orders.
Tether, behind USDT, and Circle, issuing USDC, have recently demonstrated these capabilities. Tether reportedly froze $344 million following U.S. authorities’ demands. Additionally, Binance, a major crypto exchange, has initiated restrictions targeting its Russian clientele.
How will fees and transaction limits work?
Precise fee structures for non-local tokens remain under wraps. According to Vladimir Chernov from Freedom Global, surcharges might vary from 0.5% to 2% on specific tokens, and could reach as high as 3% for certain stablecoins. Chernov foresaw that hefty fees might propel users to seek unregulated channels.
Denis Astafyev from SharesPro anticipates additional measures beyond fees, such as obligatory investor examinations, transaction caps per annum, withdrawal delays, and transferring limitations of assets to non-native wallets.
Russia’s crypto landscape might see significant changes beyond its borders. Data shows Russia managed $376 billion in crypto dealings from July 2024 to June 2025, leading Europe. Yuriy Brisov, a legal analyst, noted that Russian crypto enthusiasts contribute approximately $15 billion yearly to global exchange fees, which local authorities aim to redirect to domestically sanctioned platforms.
A comprehensive regulatory package expected with the draft law may include mandatory exchange licensing starting in July. Foreign exchanges without local accreditation or a physical presence could face complete shutdowns, supported by DNS-level access filtering devised by Roskomnadzor, Russia’s media authority.
The draft strongly differentiates between retail and institutional investors. Retail participants are constrained to annual transactions of 300,000 rubles, must clear competency exams, and are limited to a narrow spectrum of sanctioned tokens. In contrast, institutional investors will continue to enjoy broader opportunities.
First Deputy Governor Vladimir Chistyukhin assured that Bitcoin, Ethereum, and USDT would remain the only tokens available to retail investors, with no immediate plans to expand this roster. He suggested that ruble-tied stablecoins might soon hold precedence over foreign variants. Recent actions reflect mounting pressure on Russian-linked crypto frameworks from Western nations, as evidenced by recent sanctions from the UK and cyber incidents impacting local exchanges.
