Set Up a Cryptocurrency Company in Russia

Set-up-a-cryptocurrency-company-in-RussiaDuring the last few years, the number of qualified investors interested in the Russian financial industry have turned their attention towards the new generation of financial products. Whether it is the fintech industry or other related sectors related to it, enterprisers can set up various types of business in Russia.

Among the latest developments registered in the financial industry in Russia is the possibility of setting up cryptocurrency companies. Until recently the government had rejected the idea of using digital money for transactions in any field, however at the same time, the Bank of Russia has introduced the digital ruble (Federal Law No. 340-FZ of 2023), a central bank digital currency rather than a cryptocurrency.

Our lawyers in Russia can offer information on the regulatory framework covering cryptocurrency in this country.

How to register a cryptocurrency business in Russia

Setting up a Russian cryptocurrency company is subject to special rules: cryptocurrency cannot be used for payments, digital financial asset platforms must be registered with the Bank of Russia and miners with the Federal Tax Service (Federal Laws No. 259-FZ of 2020 and No. 221-FZ of 2024); otherwise, as the general criteria related to the business form and share capital requirements are the same as for any other type of company. Also, it should be noted that cryptocurrency companies are not considered financial companies if they only create digital currency, however they could fall under the legislation on financial services if they sell or use e-money for investment purposes.

If you want to open a cryptocurrency company, it is best to request the advice of a law firm in Russia in order to know the exact registration and licensing requirements. We can also help you open any type of company in Russia, through our local partners.

Why open a cryptocurrency company in Russia?

Russia has become more open towards the use of cryptocurrencies in the past year which has attracted a new wave of young entrepreneurs to create startup companies here. Also, a specific legal framework for digital assets now exists: after the Ministry of Finance announced it in June 2017, Russia adopted Federal Law No. 259-FZ of 2020 on digital financial assets, which restricts the use of digital currency (it cannot be used for payments), and Federal Law No. 340-FZ of 2023, which introduced the digital ruble.

Given the latest developments and the fact that blockchain and cryptocurrency are new additions to the financial industry, opening a cryptocurrency company in Russia could be a good idea for a startup business.

For assistance with the registration process of a cryptocurrency company, please contact our Russian lawyers.