The Russian Central Bank plans to lift the encryption ban in 2026, implementing a dual regulation of annual limits and a ban on Privacy Coins, while also advancing the rollout of the digital ruble. (Previous context: Russia's second largest bank VTB will allow customers to buy Bitcoin directly and recommends a portfolio allocation of 7% in cryptocurrency) (Background information: Russia, which was expelled from SWIFT, was forced to establish a cryptocurrency economic network)

Table of Contents

• Dual-track investment threshold
• Digital Ruble is the core
• Execution Schedule and Geopolitical Calculation

The Bank of Russia, which has long taken a hard stance on cryptocurrencies, has made a significant proposal on the eve of Christmas 2025: to lift the trading ban starting in 2026 and integrate crypto assets into the regulated financial system. According to an official statement, the Moscow authorities describe this new plan as a strictly fortified “controlled laboratory.” Against the backdrop of Trump’s return to the White House and the accelerating global fintech race, the Kremlin has chosen to leverage the liquidity of crypto assets while maintaining state control in the face of Western sanctions pressure.

dual-track investment threshold

The biggest highlight of the proposal is the investor distinction mechanism. For non-qualified investors (retail investors), the Central Bank sets an annual trading limit of 300,000 rubles (about $3,846). Retail investors must complete a risk awareness test before entering the market, and the tradable assets are limited to Bitcoin (BTC) and Ethereum (ETH). This quota is sufficient to meet small-scale speculation while simultaneously building a firewall to restrict large-scale outflow of rubles. In contrast, qualified investors can enjoy no trading limits but must still adhere to the red line: privacy coins (such as Monero XMR) other than Bitcoin and Ethereum are completely prohibited. The signals given by the regulatory authorities are clear—investment can be opened up, but anonymous capital flows cannot be condoned.

The digital ruble is the core

Despite the lifting of the trading ban, Russia has not changed its fundamental position on cryptocurrency. The proposal clearly states that crypto assets are considered “foreign currency assets” and are strictly prohibited as domestic payment tools; domestic settlements still rely on the Central Bank-issued digital ruble. According to the official timetable, the digital ruble will be fully implemented on September 1, 2026, and merchants with annual revenues exceeding 120 million rubles must accept this new type of currency. In other words, cryptocurrency has become a buffer zone for connecting with high-risk foreign funds, while the digital ruble firmly holds the pulse of the domestic economy. The authorities also allow citizens to declare overseas account assets, thereby “sunnyizing” the underground economy and expanding the tax base.

Execution Schedule and Geospatial Calculation

The proposal outlines a clear timetable: legislation to be completed by July 2026, and criminal penalties to be imposed on unlicensed intermediary organizations starting in 2027. Central Bank Governor Elvira Nabiullina seeks to balance high-pressure sanctions with internal capital demands, attempting to exchange a “semi-open” framework for market depth while maintaining control over the flow of currency. Externally, Russia can guide funds through regulated encryption channels, reducing the risk of blockages in the dollar system; internally, the digital ruble enhances real-time regulatory capabilities, further strengthening the resilience of state capitalism.

From “comprehensive ban” to “controlled regulation”, Russia's strategy is not to embrace the free market, but to reclassify decentralized assets and transform them into geopolitically manageable pieces. If the Trump administration really relaxes US regulations in the future, Moscow's dual-track model will become an alternative path that is state-led but still accommodates investment needs. This shift reflects a new phase in Russian economic governance: in an era of globalization retreat and normalizing sanctions, embedding risk control into product design, and packaging “encryption freedom” into supervisable, taxable, and punishable financial components through quantitative thresholds and technical monitoring.