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Russia Maintains Strict Stance on Bitcoin and Ethereum
Russian lawmakers have reiterated that all domestic transactions in the country must be conducted exclusively in rubles, while cryptocurrencies like Bitcoin and Ethereum are allowed only as investment instruments. Speaking to the state-run news agency TASS, Anatoly Aksakov, chair of the State Duma Committee on Financial Markets, emphasized that the legal framework supports this stance.
“In Russia, cryptocurrencies will never be considered money, and any transaction involving goods or services must be paid in rubles,” Aksakov stated.
Ruble-Only Rule and Legal Context
This position aligns with laws enacted in 2020, which officially prohibited the use of cryptocurrencies as a domestic payment system. The legislation removed digital assets from the list of forms of legal tender, a point Aksakov reiterated in his comments. While digital assets may be traded or invested in, they cannot be used for everyday economic transactions. According to Aksakov, lawmakers continue to support the central bank’s stance that crypto should not serve as an alternative domestic payment method.
Central Bank Skepticism
The Bank of Russia, led by Governor Elvira Nabiullina, has long opposed cryptocurrency payments, citing financial stability and consumer protection concerns. Nabiullina has requested comprehensive bans on crypto transactions, exchanges, and mining. Tensions between the central bank and the Ministry of Finance have shaped Russia’s regulatory landscape: the bank favors stricter restrictions, similar to China’s model, while the Ministry of Finance has advocated for regulated exchanges and taxation of crypto profits. Past legislative proposals have stalled in the State Duma due to committee disagreements.
Growing Use in International Trade
Despite domestic restrictions, Russian authorities acknowledge that cryptocurrencies are increasingly used in cross-border commerce. Aksakov noted that businesses have already conducted billions of dollars in international trade using crypto. These transactions operate under a separate legal framework that allows digital assets for foreign payments. Nabiullina also indicated that limited crypto use in international transactions is permitted under certain conditions, highlighting the difference between domestic monetary rules and external trade mechanisms.
Regulatory discussions continue, with officials like Evgeny Masharov advocating for formal crypto regulation to boost federal revenues and combat financial crimes, signaling a nuanced approach toward the sector’s legal recognition.
