Russia has emerged as Europe’s largest cryptocurrency market by transaction volume, surpassing the UK and Germany, according to a report by blockchain analytics firm Chainalysis. The country recorded $376 billion in crypto transactions from July 2024 to June 2025, up from $256.5 billion in the previous year. This significant growth has been driven by a surge in institutional transfers and rapid adoption of decentralized finance (DeFi) platforms.
The report highlights that transactions over $10 million jumped 86% year-over-year, nearly double the 44% growth seen in Europe. Retail activity also outpaced the regional average, with DeFi operations more than tripling from 2023 levels. The introduction of the A7A5 ruble-denominated stablecoin has played a key role in boosting Russia’s ranking, becoming a major vehicle for cross-border payments.
Russia has taken a cautious approach to cryptocurrencies, with digital assets not recognized as legal tender. However, they are allowed for cross-border transactions, and the central bank has created a framework for qualified investors to trade digital assets. The country has also legalized crypto mining, although it is restricted in energy-deficient regions until 2031.
President Vladimir Putin has acknowledged the potential of crypto regulation, urging the creation of legal and technological frameworks for its domestic and cross-border use. However, the central bank remains cautious, with First Deputy Governor Vladimir Chistyukhin announcing that new legislation regulating cryptocurrency investment is expected in 2026. This legislation will introduce administrative and criminal penalties for illegal circulation and limit investments to qualified investors.
The growth of Russia’s cryptocurrency market is significant, with the country’s largest lender, Sber, issuing structured bonds linked to Bitcoin earlier this year. As the market continues to evolve, it is likely that we will see further developments in Russia’s approach to cryptocurrencies. With the central bank’s plans to introduce new legislation, it is clear that the country is taking steps to regulate and legitimize the use of digital assets.