Russia moves to regulate offshore crypto exchanges

Lawmakers in Russia are drafting new regulations that may restrict access to foreign exchanges as part of a more stringent framework for cryptocurrencies. Limits on offshore platforms might begin as early as this summer, according to a recent RBC report, as part of a plan to reduce reliance on unregulated options and establish a regulated domestic system. Interfax has separately noted that the legal framework for Russian exchanges is expected to be ready by 1 July 2026.

Legislative timeline toward 2026

Russia is working towards a major shift in how it regulates cryptocurrency. By 1 July 2026, authorities plan to have a full legal framework in place for crypto exchanges. This marks the end of the current experimental phase, where crypto use was allowed mainly for foreign trade under limited conditions.

Russia’s crypto market is estimated to see daily turnover of around 50 billion rubles (approx. $659 million), but most of this activity takes place outside regulated systems. Officials describe it as an economy operating largely in the shadows, raising concerns about oversight and stability. At the same time, participation is widespread, with millions of Russians involved in transactions, showing that crypto has moved firmly into the mainstream.

$15 billion fee problem

Sergey Shvetsov, Chairman of the Supervisory Board of the Moscow Exchange, has pointed out that Russians pay about $15 billion in fees to international crypto exchanges each year. This money flows outside the country, and the Moscow Exchange wants to change that. Once domestic exchanges are licenced, the goal is to capture part of this revenue, reflecting both regulatory priorities and economic interests.

With VPNs, mirror sites, and other technical solutions available to consumers, it would be challenging to implement a total ban on international cryptocurrency exchanges in Russia. Regulators might still target the points of entry to make access more difficult, though. Even if technical workarounds are still possible, exchanges will find it difficult to onboard users if banking channels or payment systems are banned, making participation more difficult.

Risks of over-enforcement

Nikita Zuborev of BestChange.ru has cautioned that heavy-handed restrictions on crypto exchanges could have unintended consequences. If users lose access to major platforms, many may turn to smaller intermediaries.

In less than three months, more than 1,800 people in Russia reported to law enforcement that their bank accounts had been frozen due to suspected links with crypto-related fraud. These cases highlight the personal impact of unclear regulations and the risks of operating in a system where oversight is still being defined.

Banks push for faster legalisation

Elvira Nabiullina, Governor of the Central Bank of Russia, has stressed the importance of prosecuting crypto operations that fall outside the legal framework, arguing that unregulated markets create space for fraud. Current proposals aim to introduce criminal liability for transactions conducted in these grey areas, with the view that only a regulated system can effectively reduce risks and protect participants.

Andrey Kostin, CEO of VTB, has called for quicker legalisation of cryptocurrency transactions, pointing to demand from major clients such as exporters. With sanctions reshaping Russia’s financial system, businesses are looking for alternatives to traditional payment channels. For many, crypto is seen less as a political statement and more as a practical tool to facilitate trade under current conditions.

Russia’s upcoming crypto regulations are expected to focus heavily on licensing domestic exchanges and establishing a clearer legal framework to support compliant trading infrastructure. Officials are not expected to shut down offshore platforms straight away.