Putin orders faster push to legalize crypto and shrink Russia’s shadow economy

The Russian government has come up with a plan to bring more of the country’s economy out of the shadows and legalizing crypto is listed as a priority.

President Putin recently urged the executive power to speed up its implementation, including measures to curb the widespread illegal minting of digital currencies.

Moscow moves to clean up Russia’s economy on Putin’s order

Authorities in Russia are taking on the task to “whiten” the nation’s economy, reports in the local press revealed this week. Crypto will be in the focus of these efforts, alongside cash and gold.

Systematic work to reduce the size of the “gray” sector has already started at the government, after the intervention of the head of state, an article by the business daily Vedomosti unveiled Friday.

On December 15, Russian Deputy Prime Minister Dmitry Grigorenko presided over a meeting of the Cabinet of Ministers to discuss expediting the drafted plan.

The latter will be revised by the Ministry of Finance by December 19, to take into account the tight new deadlines suggested by Vladimir Putin, and submitted by December 22.

A series of legislative amendments and new laws must be proposed by the relevant ministries and filed by January 26, the report detailed, quoting a source from the Minfin who emphasized:

“A significant number of bills will be prepared, both establishing new regulations and amending existing ones.”

The government presented Putin with the plan to “clean up” the economy at a meeting of the Council for Strategic Development and National Projects on December 8.

The Russian leader noticed that most of the tasks in it were slated for the last quarter of 2026, months after the scheduled increase of VAT in January, and ordered that the whole process be accelerated.

Putin reportedly stressed Russian officials should take it as a priority to ensure that “nothing goes into the shadows, everything operates legally, and the corresponding revenues flow into the budget.”

Russia to legalize crypto and criminalize illegal mining

The authors of the plan have identified several key areas where the government will focus its regulatory efforts, including cross-border trade, labor relations and lending services.

Among them is the legalization of financial flows, including tighter controls on the movement of cash and gold, especially their export in the light of concerns over capital flight.

Another major task is the adoption of legislation regulating transactions involving digital assets, including the circulation of cryptocurrencies.

The executive arm in Moscow is also confirming previously announced intentions to impose harsher penalties for illegal crypto mining.

Earlier this month, Deputy Prime Minister Alexander Novak said that Russian authorities plan to introduce criminal liability for offenses such as the minting of digital coins with stolen electricity.

Smaller violations of the existing legislation will result in administrative liability, Novak also revealed, as reported by Cryptopolitan.

Russia legalized mining in 2024, introducing a registration regime for mining enterprises. However, the share of registered crypto farms remains quite small, around 30%.

While the first regulated crypto business in Russia is admittedly benefiting its economy, the country is facing a number of issues with the industry, such as energy shortages which led to the prohibition of the activity in a dozen regions and an intensifying crackdown on unauthorized mining operations.

Turnover from the industry and the growing use of cryptocurrencies under sanctions convinced the Russian government it needs to properly regulate these flows, including investments, beyond a temporary “experimental” legal regime introduced earlier this year.

Comprehensive rules for the crypto market are now expected in 2026. The framework should expand investor access, although not by much, and introduce licensing for cryptocurrency exchanges.

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