Cross-Border Crypto Payments in Russia: How New Bitcoin Regulations Are Reshaping Trade

For years, Russia banned cryptocurrency payments outright. Now, it’s quietly using Bitcoin and stablecoins to move trillions of rubles across borders - all under a government-approved pilot program. This isn’t a loophole. It’s policy.

From Ban to Bargain: How Russia Changed Its Mind on Crypto

In 2021, Russia’s Central Bank called Bitcoin a threat to financial stability. By 2025, Russian energy firms are using it to invoice oil exports to China and India. What happened? Sanctions. When Western banks cut off Russian companies from SWIFT, Moscow needed an alternative. Crypto wasn’t just convenient - it became necessary.

The shift came with Federal Law No 221-FZ, passed in September 2024. It didn’t legalize crypto for everyone. It created a narrow, tightly controlled channel: only registered legal entities can use Bitcoin, Ethereum, or Tether for cross-border trade. Domestic payments? Still illegal. Retail use? Still blocked. But international settlements? Now officially sanctioned.

This isn’t about freedom. It’s about survival. Russia’s economy needed to keep trading. Crypto became the workaround that kept the lights on.

Who Can Use Crypto - And Who Can’t

Not everyone gets access. The rules are strict. Only companies enrolled in the pilot program can send or receive crypto payments abroad. These aren’t small businesses. They’re large exporters - mostly energy, metals, and grain firms - working with approved digital asset platform operators like the A7 Group.

These operators must be certified by the Bank of Russia. Every transaction is tracked. The origin of funds must be disclosed. Anti-money laundering checks are mandatory. Suspicious peer-to-peer transfers are flagged and reported. It’s surveillance with a purpose: keep crypto out of the hands of ordinary Russians, while letting state-aligned firms use it to bypass sanctions.

Individuals? Still locked out. To invest in crypto derivatives like Bitcoin futures, you need to be a "highly qualified investor." That means either having over 100 million rubles ($1.1 million) in securities and deposits, or earning more than 50 million rubles ($550,000) annually. In May 2025, Russian investors bought $16 million in crypto-based products in just one month - all from this tiny elite group.

The average Russian can’t legally buy Bitcoin on a local exchange. Most hold their crypto on foreign platforms like Binance or Bybit. Estimates suggest Russians own more than $25 billion in digital assets - all held outside the system the government created.

The Digital Ruble: Russia’s Own Crypto, But Not for You

While Bitcoin is used for trade, Russia is building its own digital currency: the Digital Ruble. Launched in August 2023, it’s already processed over 100,000 transactions through 2,500 wallets across 150 cities. But here’s the catch: the Digital Ruble isn’t meant for international trade. It’s designed for domestic payments - and it’s being rolled out slowly.

Large enterprises start using it on September 1, 2026. By 2028, all merchants must accept it. The goal? Replace cash and cards with a state-controlled digital payment system. Unlike Bitcoin, the Digital Ruble gives the government full visibility into every transaction. No anonymity. No bypassing. Just control.

It’s a two-track system: Bitcoin for global trade, Digital Ruble for domestic control. One opens doors abroad. The other locks them at home.

How Companies Are Actually Using Bitcoin Today

Russian oil and gas exporters are leading the charge. They’re using Tether (USDT) and other stablecoins to settle deals with buyers in China, India, Turkey, and the UAE. Why? Because banks in those countries still accept crypto - and don’t ask questions about sanctions.

One major energy company settled a $320 million deal with an Indian refinery in USDT in January 2025. The payment cleared in under 10 minutes. No SWIFT delays. No frozen accounts. No intermediary fees. The buyer received the crypto. The seller converted it to rubles through a licensed Russian exchange.

The A7 Group, linked to a sanctioned Russian bank, is another key player. They use ruble-backed stablecoins to pay for imports from Kazakhstan and Uzbekistan. These aren’t underground deals. They’re documented, audited, and approved by the Bank of Russia.

By mid-2025, Russia’s cross-border crypto trade hit 1 trillion rubles ($11 billion). That’s more than the entire annual crypto volume of Germany or Canada. And it’s growing.

The Tightrope: Control vs. Chaos

The Bank of Russia still hates crypto. In March 2025, it pushed for criminal penalties for anyone using crypto outside the pilot program. It warns that unregulated crypto could destabilize the financial system. But at the same time, Deputy Finance Minister Ivan Chebeskov says Russia needs a full digital asset strategy - not just a temporary fix.

This contradiction isn’t a mistake. It’s deliberate. The government wants the benefits of crypto - faster payments, sanctions evasion, lower fees - without letting it spread to the public. They’re betting that controlled use will weaken Western financial pressure, while keeping ordinary Russians dependent on state-controlled systems.

The result? A regulatory maze. Businesses must navigate KYC checks, transaction reporting, AML monitoring, and approved platforms - all while avoiding any contact with unlicensed exchanges. One misstep, and you could be fined or blacklisted.

What’s Next? The Road to 2026 and Beyond

The pilot program runs for three years. By 2027, the government will decide whether to make it permanent. But signs point to expansion.

The Central Bank is preparing to allow investment funds to trade crypto derivatives in 2026. They’re also drafting rules for new financial instruments tied to Bitcoin and Ethereum. And the Finance Ministry is considering lowering the "highly qualified investor" threshold - slowly opening the door to more people.

Meanwhile, Russia is positioning itself as a global hub for crypto trade with non-Western countries. It’s signing agreements with China, India, and the UAE to standardize crypto settlement procedures. The goal? Create a parallel financial system - one that doesn’t rely on the dollar, SWIFT, or Western banks.

For now, the rules stay strict. But the direction is clear: crypto isn’t going away in Russia. It’s being reshaped - weaponized, even - to serve state interests.

What This Means for the Rest of the World

Russia’s approach is unique. No other country has legalized crypto for cross-border trade while banning it domestically. But other nations under sanctions - Iran, Venezuela, North Korea - are watching closely. If Russia succeeds, more countries may follow.

Western regulators are concerned. The U.S. Treasury and EU financial watchdogs are already reviewing how to track crypto flows involving Russian entities. New sanctions targeting crypto exchanges that service Russian businesses are expected in early 2026.

But Russia’s experiment shows something important: when you cut off a country from the traditional financial system, it finds another way. Crypto isn’t just a currency. It’s a tool of economic resistance.

For now, Russia’s crypto strategy is working. Trade keeps flowing. Sanctions lose their bite. And the government holds the keys - not the people.