Cross-Border Crypto Payments in Russia: What the New Bitcoin Regulations Really Mean

For years, Russia banned Bitcoin and other cryptocurrencies for everyday use. But in 2024, everything changed. Now, Russian companies can legally use Bitcoin, Ethereum, and stablecoins to pay for goods and services across borders - and it’s not just a loophole. It’s a state-approved strategy to bypass Western financial sanctions. If you’re wondering how this works, who can use it, and what it means for global trade, here’s the real breakdown.

What Changed in 2024? The Core of Federal Law No 221-FZ

Before September 2024, using crypto for any kind of payment in Russia was illegal. The Central Bank called it a threat to financial stability. But as Western banks cut off Russian firms from SWIFT and blocked dollar transactions, the government had to adapt. The solution? A three-year pilot program under Federal Law No 221-FZ. This law doesn’t legalize crypto for your coffee or online shopping. It only allows legal entities - businesses, exporters, importers - to use approved digital assets for cross-border settlements.

That means a Russian oil company can now invoice an Indian buyer in Bitcoin or Tether (USDT), and the transaction is legal - as long as it goes through a certified platform monitored by the Bank of Russia. The same applies to gas, metals, and grain exports. The goal isn’t to replace the ruble. It’s to replace the dollar and euro in international trade.

Who Can Use Crypto for Cross-Border Payments?

This isn’t open to everyone. Only companies enrolled in the pilot program can do it. These are typically large exporters - energy firms, mining companies, manufacturers - with direct ties to foreign buyers. Small businesses, freelancers, or individual Russians still can’t legally send Bitcoin abroad. The Bank of Russia keeps tight control over who gets access.

To participate, a company must:

• Be registered in Russia as a legal entity
• Work with a certified digital asset platform operator approved by the Bank of Russia
• Provide full transaction records, including sender, receiver, and origin of funds
• Pass strict Anti-Money Laundering (AML) and Know Your Customer (KYC) checks

Even then, the platform operator must report every transaction to tax and financial authorities. There’s no anonymity here. This isn’t crypto as it’s used in the West - it’s crypto under surveillance.

Which Cryptocurrencies Are Allowed?

The Bank of Russia published a short list of approved digital assets. Only these can be used in cross-border deals:

• Bitcoin (BTC)
• Ethereum (ETH)
• Tether (USDT)
• Ruble-backed stablecoins (like those issued by sanctioned banks)

That’s it. No Dogecoin, no Solana, no meme coins. The list is intentionally narrow. The government wants assets with high liquidity and proven track records - the kind that foreign partners will accept. Tether, for example, is widely used because it’s pegged to the U.S. dollar, making price volatility easier to manage in trade deals.

Companies like the A7 Group - partially owned by a sanctioned Russian bank - are already using USDT and ruble-backed tokens to settle invoices with partners in China, Turkey, and India. These aren’t speculative trades. They’re real commercial transactions replacing traditional banking channels.

Why Is Russia Doing This?

It’s not about innovation. It’s about survival.

After the Ukraine invasion, Western countries froze Russian central bank assets, cut off access to SWIFT, and blocked dollar clearing. Russian exporters were stuck. They had goods to sell, but no way to get paid without using U.S. or European banks. So they turned to crypto - not because they liked it, but because they had to.

By 2025, Russia’s cross-border crypto trade hit 1 trillion rubles ($11 billion USD). Energy exports alone accounted for 70% of that volume. Russia now sells oil and gas to China and India using Bitcoin and stablecoins, and those countries are happy to accept them. Why? Because they’re getting discounted prices, and they don’t have to go through Western financial gatekeepers.

The government sees this as a long-term win. By using crypto, Russia reduces its dependence on the dollar, avoids sanctions, and builds new trade alliances. It’s a geopolitical tool disguised as financial reform.

What About Ordinary Russians? Can They Use Crypto Too?

No. And they won’t be allowed to anytime soon.

Domestic crypto payments - buying things online, paying bills, sending money to friends - are still illegal. The Bank of Russia is adamant about this. They fear loss of control over the financial system, capital flight, and unregulated speculation.

But here’s the irony: Russians still hold more than $25 billion in crypto, mostly on foreign exchanges like Binance and Bybit. They use peer-to-peer platforms, VPNs, and cash-in services to buy Bitcoin. The government knows this. They just don’t enforce it - because cracking down would cause chaos.

For now, only highly qualified investors can legally invest in crypto. That means you need either:

• Over 100 million rubles ($1.1 million USD) in securities or bank deposits
• Or an annual income of over 50 million rubles ($550,000 USD)

Even then, you can only buy crypto derivatives - like Bitcoin futures - not the actual coins. The first wave of these trades happened in May 2025, with Russian investors buying $16 million in crypto futures in just 30 days. The Central Bank plans to let investment funds trade crypto derivatives in 2026. But again - only for the wealthy.

How Is This Different From the Digital Ruble?

People often confuse the Digital Ruble with Bitcoin. They’re not the same.

The Digital Ruble is Russia’s central bank digital currency (CBDC). It’s a digital version of the ruble, issued and controlled by the state. It’s meant for domestic use - paying salaries, taxes, bills - and is being rolled out in phases starting September 2026 for large companies, with full adoption expected by 2028.

Crypto payments under Law 221-FZ are different. They use decentralized assets like Bitcoin and USDT. They’re used internationally. They’re not controlled by the state in real-time. The Digital Ruble is state money in digital form. Crypto is private money, used under state supervision.

Think of it this way: The Digital Ruble is like an upgraded bank account. Crypto under Law 221-FZ is like a private courier service the government allows for international deliveries - but only for certain companies, with GPS tracking on every package.

Challenges and Risks

This system isn’t perfect. There are major hurdles.

First, compliance is a nightmare. Companies must track every transaction, report every wallet address, and prove where the money came from. Many small firms don’t have the tech or staff to handle this. That’s why only big players are involved.

Second, enforcement is messy. Most crypto exchanges operating in Russia are foreign. The government can’t force them to comply. So while official transactions are monitored, a lot of unofficial crypto use still happens outside the system.

Third, global trust is low. Many foreign businesses still avoid Russian crypto payments because of sanctions risk. Even if a deal is legal in Russia, the counterparty could face penalties from the U.S. or EU if they’re found to be aiding sanctioned entities.

And then there’s the long-term question: Can this last? If sanctions tighten further, will China and India keep accepting Russian crypto? Will other countries start blocking these payments too? The answer isn’t clear.

What’s Next for Russia’s Crypto Strategy?

The pilot program runs until 2027. After that, the government will decide whether to make it permanent - or shut it down.

Right now, signals point to expansion. The Ministry of Finance is considering lowering the financial thresholds for “highly qualified investors.” That could open crypto investing to more people - but still not the average citizen.

The Central Bank is also working on rules for crypto derivatives and stablecoin issuance. By 2026, you’ll likely see Russian banks offering crypto-linked financial products - but again, only for the wealthy.

One thing is certain: Russia won’t go back to banning crypto entirely. The experiment has worked too well. It’s helped maintain export revenue, built new trade networks, and weakened the dollar’s grip on global payments.

But for ordinary Russians? They’ll keep using foreign exchanges. They’ll keep buying Bitcoin in cash. And the government? They’ll keep watching - quietly, carefully - hoping no one gets caught.