Policy & Regulation·Jan 29, 2026
Russia sets course for crypto framework, enforcement planned for 2027
Russia is moving closer to establishing a comprehensive legal framework for cryptocurrency, a regulatory shift intended to integrate digital assets into the mainstream economy while simultaneously cracking down on unlicensed market participants. Photo by Egor Filin on UnsplashCrypto enforcement slated for 2027According to a report from the Parliamentary Gazette, the new package of regulations is planned to be prepared by the end of June, while from July 1, 2027, liability for illegal activity by crypto intermediaries is expected to be introduced. Anatoly Aksakov, head of the State Duma’s Committee on the Financial Markets, said that the legislation is intended to establish clear rules for the market, including strict oversight of crypto exchanges. He added that the draft law could be considered in its first reading within the next month. While the legislation seeks to normalize digital assets, officials have emphasized that the market will not be a free-for-all. The proposed framework would introduce administrative, financial, and potentially criminal liability, with enforcement modeled on existing laws governing illegal banking activity. Aksakov noted in earlier comments reported by TASS that while crypto may become a fixture of daily life, it would have clear boundaries. The government plans to cap annual crypto purchases by retail investors at 300,000 rubles (approximately $3,800). This regulatory drive coincides with an increase in crypto’s role in Russia’s cross-border transactions. Following the invasion of Ukraine, Western sanctions severed Russian banks from the SWIFT messaging system, prompting Moscow to seek alternative channels for international settlements. New data suggests these alternative payment rails have gained rapid traction. A report by TRM Labs revealed that sanctions-related crypto activity in 2025 was dominated by Russia-linked flows, a trend driven largely by the explosive growth of A7A5, a ruble-pegged stablecoin. The firm reported that A7A5 processed over $72 billion in total volume that year, while a wallet cluster tied to the A7 sanctions evasion network A7 was connected to at least $39 billion. TRM Labs identified A7 as a key bridge between Russian entities and partners in China, Southeast Asia, and Iran, signaling a concerted effort to bypass U.S. dollar-based systems. Illicit volumes hit record $158BThese numbers come as illicit crypto usage rises worldwide. According to TRM Labs, criminal transaction volume hit a record $158 billion in 2025—a 145% increase over the previous year. Yet, despite this surge, illicit activity accounted for a smaller share of the total market, falling from 1.3% in 2024 to 1.2% in 2025. Beyond Russian sanctions evasion, researchers also highlighted the burgeoning scale of Chinese-language money laundering networks (CMLNs). TRM Labs identified Chinese-language escrow services and underground banking as a distinct, high-growth sector. Adjusted crypto volume for these networks rose from roughly $123 million in 2020 to over $103 billion in 2025. Meanwhile, Chainalysis offered a smaller estimate, finding that CMLNs processed $16.1 billion in illicit crypto funds in 2025. The firm estimates that the illicit on-chain laundering market has surged from $10 billion in 2020 to over $82 billion today. This growth is supported by a sharp expansion in infrastructure, with the ecosystem now utilizing over 1,799 active wallets. Over the past five years, these operations accounted for roughly 20% of all illicit crypto funds—a share that has grown faster than illicit inflows to centralized exchanges.
