Foreign Crypto Exchanges at Risk in Russia as Lawmakers Prepare New Rules

In Brief

• Russia may restrict access to foreign crypto exchanges.
• Likely via site blocks while promoting local platforms.
• Full bans are uncertain due to enforcement challenges.

Russia could move toward restricting access to foreign cryptocurrency exchanges as early as this year, according to industry experts. Though no official ban has been announced yet, analysts say regulatory groundwork is already being laid, and the impact could reshape how Russians access crypto markets.

Why Russia Is Considering Exchange Restrictions

Indeed, Russian regulators are reportedly preparing new laws to bring crypto trading under domestic infrastructure, according to a report by RBC Crypto published on February 17.

Key factors driving the push include authorities’ estimate of ~$50B in daily crypto turnover outside regulation, Russian users reportedly paying billions in fees to foreign exchanges, and officials wanting to redirect that activity into local platforms.

Some policymakers have hinted that domestic exchanges could compete for this revenue once local regulation is finalized.

A “Likely Scenario” According To Analysts

Several experts believe access restrictions on foreign exchanges are a realistic near-term outcome. One analyst suggested that website blocks could begin as early as summer and that unregistered exchanges may be targeted first.

The blocking methods could mirror prior internet restrictions. This may involve DNS filtering and efforts to limit circumvention tools. As Nikita Zuborev, senior analyst at Bestchange, explained:

“We expect that Roskomnadzor may begin mass blocking of sites of crypto exchanges and large unregistered exchangers in Russia as early as this summer. Most likely, they will act according to the YouTube blocking model. They will delete DNS records in the Russian segment of the Internet and continue the enforcement through means like bypassing blocking.”

Could A Belarus-Style Model Emerge?

Some legal experts say Russia could adopt a model similar to Belarus. Under that framework, only licensed domestic exchanges would operate freely. Foreign platforms would face restrictions, and individuals may be pushed toward local crypto infrastructure.

However, experts note that fully enforcing such restrictions would be difficult in practice.

Ignat Likhunov, founder of the legal agency Cartesius, highlighted:

“It seems that blocking measures are being prepared in parallel with the creation of a ‘white’ zone, and conditions for ‘illegal’ exchangers and unfriendly foreign exchanges will worsen.”

Will Users Actually Lose Access?

Despite the concerns, analysts say a total ban may be hard to implement. Notably, exchanges control onboarding decisions themselves, enforcement across borders is complex, and users often find ways around restrictions.

Even after Binance scaled back services in Russia, reports suggest many users remained active on the platform.

That said, some experts warn that heavy restrictions could lead to unintended consequences, like higher trading fees, growth of gray or black markets, increased occurrence of scams, and fraud risks.

The effects could spread beyond Russia, potentially accelerating regional crypto fragmentation, strengthening domestic exchanges, and setting a precedent for other jurisdictions. But enforcement challenges remain significant.

The Bottom Line

For now, foreign crypto exchanges remain accessible to Russian users, but the regulatory direction is clear. Experts anticipate gradual tightening rather than instant bans and increasing pressure on foreign platforms. At the same time, they expect parallel development of local crypto alternatives.