On January 2026, the Russian Constitutional Court made a key ruling on a USDT lending dispute, determining that crypto assets should be protected under property rights law. This marks a significant step in Russia's regulation of crypto assets. The ruling overturned the lower court's original decision to deny judicial relief on the grounds that 'stablecoins are not applicable under the current Digital Financial Assets Law,' setting a legal precedent for similar cases.
The case originated in 2023, where the plaintiff filed a lawsuit against the defendant for failing to repay 1000 USDT. However, previous lower courts dismissed the claims on the grounds that 'USDT is not within the jurisdiction of Russia (Digital Financial Assets Law).' The Constitutional Court's ruling clarified two principles: first, that crypto assets should be included in the scope of property rights protection; second, that the holder's failure to report crypto assets to the tax authorities cannot be a reason to deprive them of property rights protection.
This ruling fills the gap in legal protection for cryptocurrency assets in Russia. Although the 2020 (Digital Financial Assets and Cryptocurrency Mediation Law) first mentioned cryptocurrency, it prohibited its use as a payment tool, and the protection of privately held assets was also unclear. This ruling breaks through the original framework, providing direct legal basis for the property rights of digital assets and pointing out that refusing judicial protection on the grounds of legislative gaps is inappropriate.
This case is expected to have a widespread impact on future civil and criminal cases involving cryptocurrency assets, providing legal protection for approximately 20 million cryptocurrency asset holders in Russia (with a total estimated value exceeding $40 billion) and enhancing market confidence. The Russian cryptocurrency market has become significantly active in recent years, with a cumulative cryptocurrency transaction volume exceeding $376 billion from July 2024 to June 2025, making it one of the important cryptocurrency markets in Europe.
The ruling also echoes the shift in Russian policy. In December 2025, the Central Bank of Russia submitted a plan to the government for the liberalization of cryptocurrency, aiming to establish a compliance framework for retail cryptocurrency investment by July 1, 2026. The Constitutional Court's ruling provides judicial support for this, helping to promote the compliance development of cryptocurrency assets in Russia. Previously, Russia had legalized cryptocurrency mining in November 2024, although some regions implemented a mining ban starting in 2025.
In the future, Russia's cryptocurrency regulation is expected to become more refined. The parliament is reviewing relevant drafts, proposing to regard cryptocurrency as marital joint property and to include it in the division scope during divorce. The overall regulation presents characteristics of 'strict domestic regulation and flexible cross-border regulation': it does not recognize cryptocurrency as legal tender, prohibits its use for domestic ruble payments, and restricts the circulation of private stablecoins; at the same time, it allows its use in cross-border trade settlements, compliant mining, and tiered retail investment (with a cap of $7,000 per year for qualified investors and $600 for ordinary retail investors).
This progress in Russia is also part of the global evolution of cryptocurrency asset regulation. In recent years, major markets such as Hong Kong and the United States have been accelerating relevant legislation, for example, the Hong Kong (stablecoin regulation) took effect in August 2025. Russia's practices provide a reference for countries with different national conditions, such as energy-rich countries focusing on green mining, financially open countries concentrating on investor protection, and countries under sanctions exploring cross-border applications of cryptocurrency assets.
Overall, the ruling of the Russian Constitutional Court formally grants legal status to the property rights of cryptocurrency assets, creating a clearer and more predictable legal environment for market participants, and is expected to promote the development of the country's digital asset sector towards a more regulated and institutionalized direction.
