Russia Targets Foreign Cryptocurrencies

Russia is preparing new regulations aimed at reducing the use of certain foreign cryptocurrencies. The government has drafted legislation that would discourage investors from holding and trading tokens issued by companies based in countries considered “unfriendly” to Russia. The proposed measures include additional fees, trading restrictions, and new compliance requirements for users.

According to Deputy Finance Minister Ivan Chebeskov, the bill introduces economic incentives and official recommendations designed to encourage Russians to move away from tokens whose issuers have the ability to freeze assets at the request of foreign authorities. The legislation is expected to be approved by the State Duma in June and take effect on July 1, 2026.

Under the proposal, retail investors without qualified investor status would be allowed to trade only Bitcoin, Ethereum, and the stablecoin USDT. Assets such as USDC and BNB would be excluded from the approved list. Russian authorities argue that these tokens carry additional risks because their issuers can restrict or freeze user funds.

Officials initially considered a complete ban on USDT. However, after opposition from industry representatives, the government decided to keep the stablecoin available to investors.

The exact level of the new fees has not yet been finalized. Vladimir Chernov, an analyst at Freedom Global, estimates that charges could range from 0.5% to 2% for “unfriendly” tokens and reach as much as 3% for stablecoins falling into the same category. He also warned that excessively high fees could push some users toward unregulated or illegal transactions.

The proposed rules would introduce several additional safeguards and restrictions, including mandatory investor knowledge tests, annual trading limits, waiting periods for fund withdrawals, and tighter controls on transfers between cryptocurrency wallets.

The impact of these changes could extend beyond Russia’s borders. According to Chainalysis, cryptocurrency transactions worth approximately $376 billion flowed into Russia between July 2024 and June 2025, making it the largest crypto market in Europe during that period.

Lawyer Yuri Brisov estimates that Russian investors currently pay around $15 billion in annual commissions to foreign cryptocurrency exchanges. Moscow wants a larger share of this activity to move to licensed domestic platforms instead.

Starting July 1, Russia is also expected to launch a mandatory licensing system for cryptocurrency exchanges. Foreign platforms operating without a Russian license and local presence could face access restrictions or outright blocking. Major international exchanges, including Binance and HTX, are likely to be among those most affected by the new rules.