Russia may block foreign crypto exchanges as licensing framework approaches

Russia plans to tighten supervision of its fast-growing crypto market and could start blocking foreign currencies in the summer of 2026. Officials are linking this effort to a new framework that will regulate Bitcoin and altcoin trading through licensed domestic platforms.

Russia plans a licensing regime for crypto exchanges and brokers

Industry experts, quoted by Russian outlet RBC, participation Authorities could start shutting down major offshore exchanges once lawmakers finalize new rules due on July 1, 2026. The rules aim to replace the current patchwork approach with a uniform regime for investment, trading and custody of digital assets.

Deputy Finance Minister Ivan Chebeskov recently said that Russians trade about 50 billion rubles every day, or about $640-$650 million in crypto. He said its annual turnover exceeds 10 trillion rubles and is largely outside the regulated zone. The Ministry of Finance and the central bank consider this volume too large to ignore.

Furthermore, the draft framework would introduce licensing for cryptocurrency exchanges and brokers and define their activities. Officials would maintain the ban on domestic crypto payments but allow trading for investments with risk warnings.

Domestic crypto platforms and licensing drift

Policymakers are focusing on the large flow of commissions now flowing abroad. Sergey Shvetsov, chairman of the supervisory board of Moscow Exchange, estimated that Russian users pay roughly $15 billion per year in fees for foreign crypto exchanges. He said local platforms will want to compete for that revenue once the law allows full crypto services.

The Moscow and St. Petersburg exchanges are already running futures on major coins and are preparing to launch spot markets for Bitcoin, Ether and other tokens. The proposed rules would allow existing licensed infrastructure to expand into crypto, while imposing limits and tests on retail traders that regulators call unqualified investors.

Lawmakers are also discussing possible caps on the amount of money retail investors can allocate to digital assets each year. The central bank would have the power to approve which cryptocurrencies can be traded on regulated platforms and could restrict privacy-oriented coins that complicate oversight and sanctions compliance.

Also read: Russian crypto miner accused of illegally tapping 6 million rubles worth of electricity

Blocking foreign crypto exchanges and risk of shadow markets

According to analysts, the technical enforcement will most likely use technologies that Russia already uses to block other foreign currencies. Nikita Zuborev, a senior analyst at bestchange.ru, said Roskomnadzor may block unlicensed crypto exchanges. Zuborev also said that DNS-level blocking and deep packet inspection will likely be applied.

According to some experts, the government could also implement data localization regulations. Many major international crypto exchanges store user data on their servers in Europe or the United States. The government can use this as a way to justify restrictions if the exchanges refuse to store user data of Russian users on local servers or obtain a license.

However, some experts believe that the demand for offshore services will not disappear. Russian users can switch to other services such as VPNs, P2P exchanges and decentralized exchanges. In these markets it will be more difficult for the government to enforce restrictions. However, there is a risk of fraud.

The success of the new policy will depend on the time it takes for new exchanges to build liquid markets and on the extent to which the government imposes restrictions on access to foreign exchanges.

Also read: Crypto exchanges face compliance risks amid US sanctions investigation against Iran