Russia’s Security Council Demands Radical Crypto Regulation Overhaul

Forget cautious frameworks—Russia's top security body is pushing for a crypto rulebook built for the future.

The Kremlin's Innovation Mandate

The directive is clear: ditch the reactive playbook. The Security Council isn't asking for minor tweaks; it's demanding a foundational shift toward proactive, innovation-friendly regulation. This moves the conversation from "if" to "how" Russia engages with digital assets on the global stage.

Why This Isn't Just Another Policy Paper

This call comes from the nation's highest security apparatus, signaling that crypto is now a core strategic priority, not a financial side project. The goal is to craft rules that attract capital and talent, not just control them—a stark contrast to the compliance-heavy approaches bogging down other markets. It's a bid for competitive advantage, wrapped in a security briefing.

The Global Stakes Just Got Higher

While other major economies debate enforcement, Russia is plotting a framework designed to bypass bureaucratic inertia. A streamlined, forward-looking regulatory environment could position Moscow as an unexpected hub for crypto-native ventures looking for clarity. Of course, watching a security council dive into tokenomics is a stark reminder that in geopolitics, every innovation eventually becomes a tool—or a weapon.

The move throws down a gauntlet to traditional financial hubs: innovate your rulebooks, or watch the next wave of digital finance get shaped elsewhere. It’s a high-stakes gamble that treats crypto not as a speculative toy, but as the inevitable infrastructure of modern statecraft—cynics might say it's the most realistic finance policy they've seen in years.

Security Council commission highlights need for innovations in crypto regulation

The Interdepartmental Commission on Public Security at the Security Council of the Russian Federation has emphasized on the need for innovative legislation to address issues stemming from the circulation of cryptocurrencies in the country.

Its members have put forward a set of additional measures to achieve that, which have been drafted at a recent meeting, Russian media reported, quoting the Council’s press service.

The proposals particularly focus on boosting the fight against organized crime using information and telecommunications technologies, the Interfax news agency reveled on Tuesday.

“Tasks have been set to improve interdepartmental cooperation in combating crimes committed by organized groups and criminal organizations, and to prevent and suppress the involvement of minors,” the commission explained.

At the same time, its press release further stressed:

“The importance of introducing innovations to criminal and criminal procedural legislation, providing for the criminalization of certain acts using digital technologies and the regulation of cryptocurrency circulation issues, was noted.”

In the same regard, the commission also put an emphasis on the needed strengthening of international cooperation in combating high-tech crimes.

“Specific solutions have been developed to improve the prevention of illegal activities by leaders and members of criminal groups serving time in prison,” the report detailed.

The Security Council of the Russian Federation (SCRF) is a consultative body supporting decision-making in the Kremlin on national security and strategic matters.

It’s formed by top officials, including the heads of defense and security agencies, and is chaired by Russian President Vladimir Putin, who coordinate to determine Russia’s policy in the field.

Russian crypto regulations expected in the coming months

The authorities in Moscow have gradually acknowledged the need to properly regulate cryptocurrencies, the importance of which has been growing against the backdrop of sanctions that are significantly limiting Russian access to traditional financial channels.

Mining became the country’s first regulated crypto activity, after the adoption of a dedicated law last year, although a number of issues such as the illegal use of electricity to mint digital coins and the low percentage of registrations among miners are yet to be resolved.

The sector was recently recognized as Russia’s new “hidden export,” big enough to influence the domestic currency market and exchange rates, and significant enough to be added to the nation’s balance of payments, as reported by Cryptopolitan.

In March of this year, the Central Bank of Russia (CBR) proposed an “experimental legal regime” (ELR) allowing Russian companies to use cryptocurrencies in cross-border payments and permitting “highly qualified” investors to acquire digital assets. In May, it authorized the offering of crypto derivatives.

In October, the monetary authority urged lawmakers to adopt legislation thoroughly regulating crypto investments beyond the framework of the ELR.

In December, the head of the Financial Markets Committee at the State Duma, Anatoly Aksakov, announced that Russian deputies will focus on that during the spring session to get it done by the end of 2026 at the latest.

This will allow them to then prepare and approve other necessary changes, such as amendments introducing administrative and criminal liability for illegal operations with decentralized digital currencies like Bitcoin (BTC), likely to take effect the following year.

Earlier this week, Aksakov stated that while cryptocurrency will never be accepted as a means of payment in Russia, where the ruble is the only legal tender by law, crypto assets will certainly serve as investment instruments.

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