Russia has shifted from banning Bitcoin a decentralized digital currency now used for cross-border trade to using it for cross-border Bitcoin payments under Federal Law No 221-FZ. This pilot program, launched in September 2024, lets legal entities use Bitcoin and other digital assets for international trade while keeping domestic use prohibited. Here’s how it works in practice.
What Changed in Russia's Crypto Regulations?
Before 2024, Russia banned all cryptocurrency transactions. President Vladimir Putin ordered the Finance Ministry and Central Bank to find a middle ground. The result was Federal Law No 221-FZ-a temporary three-year pilot program. This law allows companies to use Bitcoin, Ethereum, Tether, and other approved assets for cross-border settlements. Domestic crypto payments remain strictly forbidden, but international trade gets a clear pathway. The move directly responds to Western sanctions, giving Russian businesses tools to bypass traditional banking systems.
Who Can Use Cross-Border Crypto Payments?
Only legal entities (businesses) can participate. Individuals are completely excluded. Companies must join the Bank of Russia’s pilot program and work with certified digital asset platform operators. These platforms handle transaction verification, origin tracking, and compliance checks. For example, energy companies exporting oil to China now use Bitcoin to invoice customers. The Bank of Russia requires full transparency: every transaction must be recorded and reported. Violating these rules triggers criminal liability under new amendments.
Approved Cryptocurrencies and Stablecoins
The pilot covers Bitcoin (BTC), Ethereum (ETH), Tether (USDT), and other stablecoins tied to rubles or foreign currencies. The Bank of Russia maintains a restricted list of approved assets. All transactions must use these currencies-no unapproved altcoins allowed. This prevents speculative use and keeps focus on trade. Tether’s stability makes it popular for oil and gas exports. In early 2025, Russian energy firms invoiced $1.2 billion in exports using USDT. The Central Bank also confirmed Tether-backed stablecoins are the primary tool for cross-border deals due to their peg to fiat currencies.
Real-World Examples in Action
Take the A7 Group, partially owned by a sanctioned Russian bank. They use Tether and ruble-backed stablecoins for international transactions with Asian partners. By mid-2025, their crypto-facilitated trade reached $400 million. Energy companies like Gazprom and Rosneft now routinely use Bitcoin for oil sales to China and India. Official government data shows Russia’s crypto-facilitated trade hit 1 trillion rubles in 2025. This bypasses Western-dominated banking systems, especially for countries like Turkey and Iran where traditional payment channels are blocked.
Domestic vs. Cross-Border Rules
| Aspect | Domestic Use | Cross-Border Use |
|---|---|---|
| Legal Status | Strictly prohibited | Allowed under Federal Law No 221-FZ pilot |
| Participants | No individuals or businesses | Only certified legal entities |
| Transaction Oversight | N/A | Bank of Russia-certified platforms |
| Investor Access | Restricted to qualified investors only | Same restrictions apply |
Domestically, Russians can’t use Bitcoin for shopping or salaries. The Central Bank insists on maintaining the ruble’s dominance. But for international trade, the rules relax significantly. Companies must still follow strict AML/KYC protocols, but the flexibility helps them navigate sanctions. The Digital Ruble pilot started in August 2023 with 12 banks. By mid-2024, it processed over 100,000 transactions through 2,500 wallets across 150 cities. This shows how Russia is testing digital currency infrastructure before full rollout.
The Digital Ruble's Role
The Digital Ruble isn’t part of the cross-border pilot yet. It’s a separate central bank digital currency (CBDC) for domestic use. However, its success informs the broader crypto strategy. The Bank of Russia plans to expand the Digital Ruble to large enterprises starting September 1, 2026. By 2028, all Russian merchants must accept it. This phased approach shows Russia’s cautious path: test CBDC domestically first, then integrate it with cross-border crypto systems. Deputy Central Bank head Valery Krasinsky confirmed in 2025 that the Digital Ruble’s infrastructure will eventually support cross-border settlements, but only after rigorous testing.
Compliance Challenges
Businesses face complex hurdles. Anti-Money Laundering (AML) rules require tracking transaction origins and destinations. The Bank of Russia issued detailed guidelines for identifying suspicious peer-to-peer trades. Know Your Customer (KYC) checks are mandatory, but many crypto exchanges operate outside Russia’s legal framework. This creates enforcement gaps. In 2025, Russian authorities blocked 12 unregistered exchanges for violating AML rules. Companies must also report all crypto transactions to tax authorities. The Ministry of Finance and Central Bank share data to monitor tax evasion risks. Despite these challenges, 87% of pilot participants report smoother international transactions compared to traditional banking.
What's Next for Russia's Crypto Strategy?
The pilot program runs until 2027. After that, permanent regulations will replace it. The Ministry of Finance is considering easing "highly qualified investor" thresholds. Currently, investors need over 100 million rubles in assets or 50 million rubles annual income. In May 2025, qualified investors bought $16 million in Bitcoin futures within a month. The Central Bank plans to allow investment funds to trade crypto derivatives in 2026. Experts predict Russia will expand cross-border crypto use while keeping domestic controls strict. This dual approach balances sanctions evasion needs with financial stability concerns.
Can individuals use Bitcoin for cross-border payments in Russia?
No. Only legal entities (businesses) can participate in the cross-border pilot. Individuals are explicitly excluded. Domestic crypto payments are also banned for all citizens. The Bank of Russia maintains strict separation between business and personal use to prevent money laundering risks.
Which cryptocurrencies are approved for cross-border transactions?
Bitcoin (BTC), Ethereum (ETH), Tether (USDT), and ruble-backed stablecoins are approved. The Bank of Russia maintains a limited list of assets to ensure stability and compliance. Unapproved altcoins or new tokens can’t be used. Tether dominates cross-border trade due to its peg to the U.S. dollar, making it ideal for oil and gas exports.
How does the Federal Law No 221-FZ pilot work?
Companies must join the Bank of Russia’s pilot program and use certified digital asset platforms. These platforms verify transaction origins, enforce AML rules, and report all activity. The pilot runs for three years (2024-2027), with permanent rules to follow. Transactions must involve international trade-domestic use remains prohibited. All settlements go through official channels to ensure transparency.
What happens if a business violates the regulations?
Violations trigger criminal liability under new amendments. The Central Bank can freeze assets, shut down operations, and pursue legal action. In 2025, Russian authorities blocked 12 unregistered exchanges for bypassing compliance rules. Companies must maintain detailed records and cooperate with audits. Non-compliance risks fines up to 50% of transaction value or imprisonment for executives.
When will the Digital Ruble be used for cross-border payments?
Not yet. The Digital Ruble is currently limited to domestic use. The Bank of Russia plans to expand it to large enterprises by September 2026 and all merchants by 2028. Cross-border integration is expected after 2027, once the pilot program concludes. Deputy Central Bank head Valery Krasinsky confirmed in 2025 that the infrastructure will eventually support international trade, but only after rigorous testing.
Can Russian companies use crypto for domestic transactions?
No. Domestic crypto payments remain strictly prohibited under all circumstances. The Central Bank insists on preserving the ruble’s role in the national economy. Even in the cross-border pilot, transactions must involve foreign entities. Russian businesses can’t use Bitcoin for salaries, retail purchases, or local supplier payments. This separation avoids undermining the ruble’s stability.
How is transaction monitoring handled?
All cross-border crypto transactions must flow through Bank of Russia-certified platforms. These platforms track origin, destination, and purpose of funds. Transaction data is shared between tax authorities and financial regulators. The Central Bank issued specific guidelines for identifying suspicious peer-to-peer trades. Companies must report all crypto activity within 24 hours. This ensures compliance while enabling legitimate trade.