Russia has become Europe’s largest cryptocurrency market by transaction volume, overtaking the UK and Germany, according to a report from blockchain analytics firm Chainalysis. From July 2024 to June 2025 the country recorded $376 billion in crypto transactions, up from $256.5 billion the previous year. This growth is driven by a surge in institutional transfers and rapid adoption of decentralized finance (DeFi) platforms.
The report notes that transactions exceeding $10 million rose 86 % year‑over‑year, nearly double the 44 % growth seen across Europe. Retail activity also outpaced the regional average, with DeFi operations more than tripling their 2023 levels. A key factor in Russia’s rise is the introduction of the A7A5 ruble‑denominated stablecoin, which has become a major vehicle for cross‑border payments.
Russia takes a cautious stance toward cryptocurrencies: digital assets are not recognized as legal tender, but they are permitted for cross‑border transactions. The central bank has established a framework allowing qualified investors to trade digital assets, and crypto mining has been legalized, though it remains restricted in energy‑deficient regions until 2031. President Vladimir Putin has highlighted the potential of crypto regulation, urging the creation of legal and technological frameworks for domestic and cross‑border use.
Nevertheless, the central bank remains prudent. First Deputy Governor Vladimir Chistyukhin announced that new legislation regulating cryptocurrency investment is expected in 2026. The forthcoming law will impose administrative and criminal penalties for illegal circulation and limit investments to qualified investors.
The expansion of Russia’s crypto market is evident in developments such as Sber, the country’s largest lender, issuing structured bonds linked to Bitcoin earlier this year. As the market evolves, further regulatory steps are likely, reflecting Russia’s intent to legitimize and control the use of digital assets.
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