Russian President Vladimir Putin Signs Law Empowering Courts to Confiscate Cryptocurrency
Although Russia previously permitted some cryptocurrency activity, its Criminal Code and Code of Criminal Procedure did not explicitly cover digital currencies, complicating efforts to trace and seize criminal proceeds and enforce property claims. The new framework brings decentralized assets such as Bitcoin within the criminal-law definition of property. It closes enforcement gaps in money laundering, terrorist financing and drug cases while strengthening state control over the crypto market.
Putin signed Federal Law No. 38-FZ on February 20, 2026, amending Article 104.1 of the Criminal Code and Articles 115 and 164.2 of the Code of Criminal Procedure. The law, which took effect on March 3, allows courts to freeze digital currencies linked to criminal cases and confiscate them following a conviction. Russia estimates that traders pay about $15 billion in annual fees to overseas platforms, and the market expects foreign exchanges could be blocked as early as the summer of 2026.
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The history behind this eventPutin Signs Landmark Crypto Law Opening Regulated Retail Trading
Russia has long barred cryptocurrencies from being used to pay for goods and services at home, while gradually allowing digital assets in tightly controlled investment and cross-border channels. The shift has gained importance as sanctions complicate international settlements and Moscow seeks alternatives to traditional payment rails. The new law creates Russia’s first nationwide framework for regulated retail crypto trading and exchange oversight without recognizing digital tokens as domestic legal tender.
President Vladimir Putin has signed the legislation, with core provisions due to take effect on Sept. 1, 2026. Crypto payments for domestic purchases will remain prohibited, but digital assets may be used to settle cross-border transactions. The Bank of Russia has separately proposed exchange trading in Bitcoin, Ether and Tether’s USDT, while leaving XRP off the approved list. Under the proposed rules, ordinary retail investors would be limited to about $3,650 in crypto purchases annually.
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