Is cryptocurrency primarily used for illegal activities? A high-ranking Russian lawmaker disagrees. According to a high-ranking Russian lawmaker, only a small portion of cryptocurrency transactions are for illegal purposes, and the use of cryptocurrency for illegal activity is often overstated.

The debate comes amidst increasing scrutiny of crypto's role in evading sanctions and facilitating illicit finance. Crypto exchanges are coming under pressure to block transactions with Russia, as western politicians fear that cryptocurrencies provide a back door to move money. But is this fear justified?

Recent statements from senior Russian leaders suggest the law’s purpose is to use crypto to bypass Western sanctions. Russia will start its trial of cross-border payments using crypto next week. Russian lawmakers on Tuesday approved a new law permitting the use of cryptocurrency for international payments, as the country faces ongoing financial pressure.

In a Telegram post on April 27, the lawmaker pointed out that the misleading reports emerged from the country’s bill that seeks to introduce mechanisms for identifying users of cryptocurrency. Speaking with the Parlamentskaya Gazeta, Lugovoy revealed that he decided based on the transaction volume of some of the largest crypto exchanges in Russia.

This perspective clashes with previous attempts to heavily regulate crypto in Russia. Under the draft proposals, Russia would ban all cryptocurrency issuance and operations, stop banks from investing in cryptocurrencies, block exchanging crypto for traditional currency. Russian lawmakers passed a bill on Wednesday to give cryptocurrencies legal status, but banned them from being used as a means of payment.

While some view crypto with suspicion, others see it as a vital tool for economic stability, especially in the face of international sanctions. 5 de sept. de 2025 In response to mounting financial pressures of Western sanctions, Russia enacted significant legislation legalizing cryptocurrency mining and permitting the use of digital assets. The discussion surrounding the use of cryptocurrency for illegal transactions is far from settled, and the Russian lawmaker's opinion adds a crucial dimension to the global conversation.