Moscow’s executive head announced that authorities will start testing a digital ruble in test mode soon, alongside a new law that legalizes cryptocurrencies while imposing strict controls on their use.
President Vladimir Putin has approved a law granting Russian courts authority to seize or confiscate cryptocurrency assets, including Bitcoin, as part of an escalating regulatory push. The measure targets foreign crypto exchanges and raises legal risk for holders and platforms dealing with Russia.
The U.S. Treasury alleges an Australian citizen sold cyber tools originally developed for the U.S. government and its allies to a Russian firm known as Operation Zero. The agency also flagged millions tied to crypto-related tools exploiting U.S. software, raising national security and sanctions concerns.
Russia’s monetary authority said on Feb. 20, 2026 that cryptocurrency exchanges must establish a Russian subsidiary and comply with local law to operate, a step that will force many foreign platforms to restructure or exit the market.
Industry observers say Russia could start blocking access to foreign crypto exchanges once it finalizes domestic trading rules in the coming months. The step would push users toward local platforms and raise compliance and access questions for global firms.
EU lawmakers are pushing to bar any EU party from using cryptocurrency to transact with Russian counterparties to strengthen sanctions enforcement. The proposal targets exchanges, custodians and intermediaries and could reach indirect transfers and flagged addresses.
The Bank of Russia will revisit its cautious approach to fiat-pegged stablecoins and may explore issuing a ruble-backed token in 2026 after reports of a Kyrgyzstan-launched ruble stablecoin being used to skirt sanctions.
The European Union is considering a blanket ban on all cryptocurrency transactions with Russia, arguing a full prohibition would be more effective than targeting specific platforms used to evade sanctions. The proposal could force major exchanges and P2P services to tighten controls or halt flows involving Russian counterparties.
Ethereum co-founder Vitalik Buterin called Russia’s invasion of Ukraine “criminal aggression” and urged applying cryptocurrency governance concepts to reshape Russia’s political structure. He suggested decentralized decision-making, token incentives and on-chain transparency as tools for reform.
The EU is pushing a blanket ban on crypto transactions involving Russia and says it will close every associated channel, but analysts warn enforcement will be difficult against decentralized and cross-border flows.