Russia's encryption regulation upgrade: a strict control storm before the launch of the digital ruble

Payment System Law Targets P2P Trading

Russia has revised the "National Payment System Law" to grant banks the power to freeze suspicious accounts. According to Bits.media, user accounts involved in cryptocurrency exchange services or participating in P2P over-the-counter transactions may be fully or partially blocked due to receiving illegal funds. Triggering conditions include third-party complaints, fraud risk alerts, and risk control system alarms, and affected individuals will face the risk of payment card invalidation and interruption of banking services.

The anti-money laundering law becomes a new shackle for cryptocurrency trading

Banks can categorize the P2P platform selling currency activities as "high risk" and freeze accounts in accordance with the "Anti-Money Laundering and Terrorist Financing Law." This law was originally aimed at combating the "money runners" (referred to as dropper in Russian) who use lending accounts for money laundering. However, in practice, ordinary users may easily encounter account bans when receiving "dirty money" during OTC cash withdrawals from cryptocurrency exchanges. The revisions to the criminal law in May further stipulate that such actions may lead to criminal liability or even imprisonment.

The central bank's strong control paves the way for the digital ruble

In June, the Central Bank of Russia required commercial banks to strictly control cryptocurrency-related transfers, implement monthly limits, and prevent cash deposits. This round of regulatory tightening coincides with the preparation period for the Central Bank Digital Currency (CBDC) — the digital ruble is set to be fully launched on September 1, 2026. Recently, Putin called for the "widespread adoption" of this currency, while the Central Bank is simultaneously developing a unified payment QR code, continuing to prohibit the use of cryptocurrencies such as Bitcoin for domestic goods and services payments (only special pilot projects for foreign trade are allowed).

Key Facts Summary

• Banks are authorized to freeze accounts involved in P2P cryptocurrency transactions
• Anti-money laundering laws cover the OTC withdrawal scenarios of digital asset exchanges.
• The central bank digital currency will officially be launched in September 2026.
• Ordinary users face the risk of funds being locked when selling coins off-exchange.

Conclusion: Compliance Survival Battle in the Crypto Winter

As Russia accelerates its embrace of sovereign digital currency, the cryptocurrency cash-out channels for ordinary users are being systematically tightened. From account freezes to criminal liability, the regulatory sword is hanging over the heads of P2P traders. Before the advent of the digital ruble era, this crackdown on decentralized finance may force more Russian crypto holders underground - or to exit completely.