Can You Legally Own and Use Cryptocurrency in the CIS?

Cryptocurrency regulation in the CIS countries remains ambiguous. Some states have officially legalized the ownership and trading of digital assets, others still operate in a legal "gray area," and at least one country has introduced a complete ban on crypto transactions. None of the CIS countries recognize cryptocurrencies as legal tender. However, in most cases, individuals are allowed to hold crypto assets and conduct specific operations under certain conditions.

Below, we review the legal frameworks of Russia, Belarus, Kazakhstan, Armenia, Uzbekistan, Tajikistan, Kyrgyzstan, Azerbaijan, Moldova, and Turkmenistan regarding the regulation and taxation of cryptocurrencies — highlighting where usage is legal, where it's in the gray zone, and where it's outright banned.

Countries Where Cryptocurrency Circulation Is Legal

Russia

In the Russian Federation, cryptocurrencies are recognized under the law ‘On Digital Financial Assets and Digital Currency’ (adopted in 2021), which classifies digital currency as property. Citizens are required to declare their crypto assets and pay taxes on related income. However, using cryptocurrencies to pay for goods and services is prohibited, and there is no legal framework for domestic exchanges. Still, Russians can legally buy crypto via foreign platforms and must declare profits and pay income tax. As of November 1, 2024, a new law legalizing crypto mining also takes effect: businesses and sole proprietors must register with the tax authority, and individuals are allowed to mine within energy consumption limits.

Belarus

Belarus is considered one of the most crypto-friendly countries in the region. A presidential decree signed in December 2017 — ‘On the Development of the Digital Economy’ — was the first in the world to legally define blockchain and cryptocurrency. It allowed crypto companies to operate within the High Technologies Park (HTP) and introduced a five-year tax exemption on crypto transactions (extended through January 1, 2025). Individuals can legally buy and store cryptocurrencies, provided they are declared. However, the income tax exemption was not renewed in 2025. Additionally, direct P2P transactions have been banned since September 20, 2024 — all operations must now go through HTP-registered platforms.

Kazakhstan

Since April 1, 2023, Kazakhstan has enforced the law ‘On Digital Assets’, providing a legal basis for crypto trading and introducing taxes on mining and asset sales. Direct crypto payments are banned. Transactions are allowed only within the Astana International Financial Centre (AIFC), where exchanges can legally register. On AIFC-accredited platforms (like Bybit), residents can legally trade cryptocurrencies. Citizens are allowed to own digital assets, but payments outside special zones are illegal. Profits from mining and trading are taxable. As of 2025, miners must sell 75% of their assets through AIFC exchanges.

Kyrgyzstan

In Kyrgyzstan, the law ‘On Amendments to Certain Legislative Acts in the Field of Virtual Assets’ has been in effect since August 2022. It legalizes crypto operations and sets rules for digital asset exchange operators. Trading and exchanging crypto is permitted for individuals and companies, but direct payments for goods and services using crypto are banned (conversion to the national currency is required). Profits from such transactions are taxed as standard income, with a typical income tax rate of around 10%.

Uzbekistan

Presidential Decree No. UP-121, effective from January 1, 2023, allows individuals and companies to participate in crypto activities — but only through licensed providers registered with the National Agency for Perspective Projects (NAPP). Licensed entities include the national crypto exchange UzNEX and official exchangers like Crypto Trade NET, Crypto Market, Crypto Express, and Coinpay. Crypto transactions are tax-exempt, but using crypto as a payment method is prohibited. As of mid-2024, 16 licenses have been issued, including to crypto stores and custodians. In April 2024, administrative and criminal penalties were introduced for unlicensed trading or mining.

Armenia

On July 4, 2025, Armenia enacted its first comprehensive law ‘On Crypto Assets’ (HO-159-N), creating a regulatory framework for crypto markets, trading, and service provision. Only financial institutions licensed by the Central Bank of Armenia are allowed to offer services such as launching exchanges, issuing and storing tokens and stablecoins, crypto trading, custody, consulting, and asset transfers. The law aims to protect investors, increase market transparency, and attract investments into the sector.

Legal ‘Gray Zones’: Lack of Clear Regulation

Azerbaijan

As of now, Azerbaijan does not have specific laws regulating cryptocurrencies. Digital currencies are not recognized as legal tender. However, under the general provisions of the Tax Code, income from the trading or sale of virtual currencies is considered taxable. Apart from a mention of crypto in margin trading rules, there are no other legal references, and there is no explicit ban on crypto ownership or exchange. Therefore, holding and trading cryptocurrency is implicitly allowed, and any profits are taxed under general tax regulations.

Tajikistan and Turkmenistan

In these countries, there are no laws or official regulations addressing digital assets. However, there are also no direct bans. This creates a legal vacuum: crypto ownership and usage are not prohibited, but they are not legally protected either. There are no guarantees or defined rules for taxes or transactions. Individuals can use crypto, but do so at their own risk and without legal safeguards.

Crypto Ban: The Case of Moldova

Moldova has taken the harshest stance on cryptocurrency among CIS countries. Law No. 66, passed on March 30, 2023, bans all crypto-related operations by individuals and legal entities starting July 1, 2023. Using crypto for payments, transfers, or exchanges is now illegal. The only legal action left is holding coins as an investment, though buying or selling them inside the country is practically impossible.

Interestingly, despite the ban, income from crypto investments is still subject to taxation — profits are taxed at a rate of around 12%. This policy minimizes the risk of illegal crypto usage but also deprives citizens and businesses of the legal benefits of cryptocurrencies. The local crypto service Coinbank, the only one operating at the time, was forced to shut down and launched a petition to repeal the restrictions.

Summary Table of Cryptocurrency Status in CIS Countries

Conclusions

In summary, while cryptocurrency ownership is technically allowed in all CIS countries, the conditions for usage and trading vary widely. Most states require individuals to declare crypto assets and pay income tax on profits, while direct crypto payments are generally prohibited.

Users and investors should closely follow local laws: operate only through licensed platforms in jurisdictions with clear legal frameworks, and be aware of the lack of protection and increased risks in regions without regulation. The legal landscape is evolving, and changes may occur as governments adopt international practices and pass new legislation.