Experts Assess the Effectiveness of Proposed Cryptocurrency Payment Penalties in Russia

Russian authorities plan to introduce penalties for the purchase of goods and services using cryptocurrency starting in 2026. The State Duma will review the proposed legislation this autumn, as stated by Anatoly Aksakov, head of the Financial Market Committee, in a comment to “Izvestia.”

According to Aksakov, fines for individuals will range from 100,000 to 200,000 rubles, while legal entities could face penalties from 700,000 to 1 million rubles. Cryptocurrencies used for payments will be confiscated.

The primary objective of this initiative is to combat shadow financial transactions. Irina Kuyantseva, a corporate law and M&A advisor at BGP Litigation, noted that since 2021, a portion of these transactions has moved to a grey area, with some individuals using digital assets to circumvent sanctions in cross-border payments.

«This new bill on fines specifically targets this concealed practice. The government intends to close the loophole where a ban exists but there is no direct accountability for violations, making such transactions economically risky,» she explained.

Andrey Tugarin, founder of GMT Legal, clarified that the prohibition on cryptocurrency payments has been active since 2021 under law 259-FZ. The restriction pertains to digital currencies like Bitcoin but does not apply to stablecoins.

«The core of the ban is that digital currencies cannot be accepted as payment for the delivery of goods or services,» he emphasized.

The new regulations will primarily affect entrepreneurs, specifically legal entities and individual entrepreneurs. Tugarin stated that receiving payment in cryptocurrency for goods or services will unequivocally be considered a violation for them. Regular users may find themselves in a more ambiguous situation.

«If an individual can’t provide a clear and reasonable explanation for the origin of the cryptocurrency that enabled them to convert it into rubles in their bank account, they could potentially face fines,» he highlighted.

He further mentioned that if a user exchanges Bitcoin for rubles via a P2P platform and receives funds into their bank account, the bank, as well as government agencies, might ask for proof of the source of those funds. Without evidence of the legality of the transaction—such as the cryptocurrency being obtained through investments rather than service sales—a fine could be imposed.

Receiving a salary in cryptocurrency also carries risks. According to Tugarin, salary payments in Russia are only permissible in rubles.

«If someone is being paid in Bitcoin, for example, they will definitely be subject to fines,» he clarified.

For stablecoins like USDT, there may be legal workarounds when dealing with foreign employers. However, the judicial practice in Russia is «very diverse and sometimes contradictory,» the lawyer noted.

Experts agree that fines are ineffective in practice. The state cannot physically track all P2P transfers or cash transactions, emphasized lawyer and founder of Cartesius, Ignat Likhunov.

«This does not bolster the authority of the government; rather, it demonstrates its inability to address the reality,» he remarked.

Likhunov also noted that converting digital assets into rubles through P2P platforms or exchange services effectively nullifies the ban. Users can exchange Bitcoin for rubles using a Telegram bot or an unregulated platform and utilize them for transactions without drawing attention.

Tugarin concurred that monitoring cryptocurrency transactions would be challenging. He indicated that the state would be monitoring these operations through banks, as there are no legal and accountable cryptocurrency exchanges in the country. This approach will help identify rubles obtained from converting digital assets, but not the actual cryptocurrency transfers.

«There are numerous examples of bank inquiries related to individuals involved in buying and selling cryptocurrencies,» he added.

Machikhin remarked that oversight is complicated due to the lack of clear authority distribution among government bodies:

“No one will take responsibility, as usual, until the question of cryptocurrency authority among Rosfinmonitoring, the Central Bank, and the Federal Tax Service is resolved unequivocally.»

He mentioned the «Transparent Blockchain» service, which has reportedly cost over 2 billion rubles to develop since 2016, but noted that it is not yet operational, diminishing the effectiveness of monitoring.

Recall that on July 18, Sberbank proposed transferring the custody of Bitcoin to be under the control of banks.