In February 2026, the president signed legislation officially categorizing digital currency as property, though specifically within the framework of the criminal code. The new regulation took effect on March 3, granting investigators the power to seize Bitcoin and Ethereum just as they would real estate or vehicles. Paradoxically, what was once viewed as "ownerless money" has suddenly gained a legal status that the state is now equipped both to protect and to confiscate.
Prior to this, cryptocurrency in Russia occupied a legal gray area. While it could be mined and held, courts frequently refused to recognize these assets during divorce proceedings, bankruptcy filings, or criminal trials. That situation has now changed. Federal Law No. 38-FZ amended Article 104.1 of the Criminal Code and the Code of Criminal Procedure, establishing digital funds as property that can be seized, frozen, and transferred to a state-controlled wallet address. The process now involves specialized experts and the sealing of hardware devices—technical protocols that were previously non-existent.
There are clear motivations behind this move. The government gains a tool to combat money laundering and corruption, while simultaneously securing a mechanism to collect taxes and recover debts. At the same time, asset owners are receiving judicial protection for the first time, following the Constitutional Court's January confirmation that property rights regarding cryptocurrency must be legally upheld. This means these assets can now be divided in divorces, bequeathed in wills, or accounted for in bankruptcies—though concealing them has become significantly more difficult.
Consider a typical family in the Moscow suburbs: the husband kept a portion of their savings in Bitcoin without his wife's knowledge. In the past, these coins might have simply "vanished" during the division of marital property. Now, the court will demand an accounting of such assets, allowing the spouse to claim their rightful share. The analogy is straightforward: a wild forest has been turned into a fenced-off plot—the trees remain the same, but the boundaries are set and the owner is identified.
For the average investor, the implications are twofold. On one hand, legal status streamlines interactions with banks and notaries. On the other, the risk of tax audits and account freezes is on the rise. Amendments are already under discussion that would empower the Bank of Russia to regulate cryptocurrency circulation and impose requirements on exchanges. Purchasing crypto via foreign platforms using Russian bank cards could become increasingly difficult.
The central question is no longer whether one can hold crypto, but how to properly account for it. Those who have long used digital assets for diversification now enjoy enhanced legal protection. Conversely, those relying on total anonymity now face increased risks. Ultimately, the state hasn't banned cryptocurrency; it has simply brought it under oversight, much as it once did with foreign bank accounts and overseas real estate.
