259-FZ
Russia's federal law "On Digital Financial Assets" of 31 July 2020. Introduced legal concepts of "digital financial asset" (DFA) and "digital currency", partially legalising cryptocurrencies while banning their use as a means of payment inside Russia.
Aliases: 259-fz, fz 259, russia dfa law, russia digital assets law
259-FZ “On Digital Financial Assets, Digital Currency, and Amendments to Certain Legislative Acts” is Russia’s first law to recognise crypto assets. Adopted in July 2020, in force from 1 January 2021.
Key concepts
The law introduces two distinct terms:
- Digital Financial Asset (DFA) — tokenised claims: bonds, shares, participation rights in projects. Issued on licensed Russian platforms. Effectively Russian “security tokens”.
- Digital currency — cryptocurrencies like Bitcoin, ETH, TON. Defined as “a set of electronic data … usable as a means of payment, but not constituting a monetary unit”.
What is allowed, what is not
Digital currency in Russia:
- Allowed — owning, inheriting, gifting.
- Allowed — buying on foreign exchanges (no explicit ban).
- Banned — accepting crypto as payment for goods or services within Russia (article 14, direct prohibition).
- Required — declaration to the tax authority when amounts cross set thresholds (procedure detailed in separate acts).
DFA platforms
Under the central bank’s supervision Russia has licensed several DFA-issuance platforms: Atomyze, Sber, Alfa, Lighthouse, and others. Russian companies issue tokenised bonds, asset-backed digital rubles, and commodity tokens on them. This is a regulated, permitted track — separate from Bitcoin and TON.
TON specifically
TON falls under “digital currency” in 259-FZ terminology. Russian companies cannot accept TON as payment; Russian citizens can own TON and trade on foreign exchanges. TON does not trade on licensed DFA platforms — it is “ordinary” crypto, not a DFA.
Subsequent developments
Russia has passed further amendments and standalone laws after 259-FZ:
- 418-FZ (2024) — mining regulation (see separate entry).
- 2024-2025 amendments — experimental legal regimes permitting cross-border settlement in crypto for selected exporters.
- Digital ruble — a separate central-bank project running in parallel (this is a CBDC, not crypto in the 259-FZ sense).
What changes for the user
For an ordinary TON holder (non-custodial wallet, personal use), 259-FZ means:
- Legal to own.
- Illegal to use as payment inside Russia for Russian goods or services.
- Must be declared to the tax authority when thresholds are exceeded.
This is general information for international compliance and journalist audiences, not legal advice.