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Cryptocurrency May Go Deeper into the Shadows: Expert Assesses Consequences of Regulation in Russia

An attempt to make transactions more transparent risks pushing some operations outside official platforms

New cryptocurrency regulation in Russia may not work as authorities expect. Eduard Kolozhvari, head of the Higher School of Business at NSUEM, believes that an attempt to make the market more transparent could push some of its participants towards even more closed schemes.

According to the expert, the Bank of Russia has significantly softened its previous approach: citizens are allowed to work with cryptocurrency through state-controlled platforms, albeit with volume restrictions. For investors, this opens up the possibility of buying digital assets within the Russian infrastructure, but for those who used them as an alternative payment method, the new framework may prove too rigid.

Kolozhvari notes that central banks worldwide are trying to curb illegal money circulation and are therefore tightening control over cryptocurrency. The problem is that its payment function, especially in informal settlements, is difficult to regulate. The more restricted the official circuit, the higher the risk that some operations will simply move outside its boundaries.

The main part of the new Russian law on digital currencies and digital rights is expected to come into force on September 1. Separate provisions will become effective in 2027. The Bank of Russia has already included Bitcoin, Ethereum, and Tether USDT in the list of cryptocurrencies available for public trading on exchanges. At the same time, the expert specifically warns: for ordinary buyers, the main risk remains the unpredictability of exchange rates.

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