Russia has overtaken its peers to become Europe’s largest cryptocurrency market by transaction volume, according to data from blockchain analytics firm Chainalysis.

In a report released on Thursday, the firm said that from July 2024 to June 2025, Russia received $376 billion in crypto value – up from $256.5 billion a year earlier and surpassing the UK’s $273 billion. Both nations are considered Europe’s leading crypto markets. Germany followed with $219 billion, Ukraine with $206.3 billion, and France with $180.1 billion.

Chainalysis credited Russia’s rise to a surge in institutional transfers and rapid DeFi adoption. Transactions over $10 million jumped 86% year-over-year – nearly double Europe’s 44% growth – while retail activity also outpaced the regional average. DeFi operations, using blockchain apps for trading, lending, and interest, than tripled from 2023 levels.

The firm said Russia’s A7A5 ruble-denominated stablecoin has helped boost the country’s ranking, becoming a “key vehicle for cross-border payments.” Released in February, it became the first in Russia last month to qualify as a digital financial asset (DFA), giving importers and exporters the legal right to use it for international settlements.

Russia has taken a cautious but evolving stance on cryptocurrencies. Digital assets are not recognized as legal tender, and the law on digital financial assets bans their domestic use while classifying them as taxable property. However, crypto is allowed for cross-border transactions, and the central bank has created an experimental framework for qualified investors to trade digital assets.

The country has also legalized crypto mining – restricted in energy-deficient regions until 2031 – and earlier this year, Russia’s largest lender, Sber, issued structured bonds linked to Bitcoin.

President Vladimir Putin has called crypto regulation a “promising area,” urging the creation of legal and technological frameworks for its domestic and cross-border use.

READ MORE: Russia’s Sber launches Bitcoin-linked bonds

The central bank, however, has remained cautious. At the Finopolis forum earlier this month, First Deputy Governor Vladimir Chistyukhin said new legislation regulating cryptocurrency investment is expected in 2026, introducing administrative and criminal penalties for illegal circulation. He said investments should be limited to qualified investors and intermediaries must be licensed.

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