Russia to Test Cryptocurrency Payments in Special Administrative Regions

Russia is moving forward with plans to allow cryptocurrency payments in two designated special administrative regions (SARs), marking a significant step in the country's evolving stance on digital assets. The trial will take place on Russky Island in the Far East and Oktyabrsky Island in Kaliningrad, both of which operate outside the central bank's strict ruble-only framework for domestic payments.

Alexander Shenderyuk-Zhidkov, a senior lawmaker in Russia's Federation Council, proposed the initiative. The SARs' unique legal status enables businesses there to bypass the Central Bank of Russia's prohibition on crypto payments within the country's main jurisdiction. While cryptocurrencies are recognized as property in Russia, their use for payments remains officially banned—making these island trials a notable exception.

The MOVE signals Moscow's cautious exploration of digital asset integration, particularly for cross-border transactions. It comes amid ongoing discussions about comprehensive crypto regulation in Russia, where authorities have so far only sanctioned limited international crypto settlements.