Russia Proposes Inclusion of Cryptocurrency in Divorce Settlements

Russia Proposes Making Crypto Part of Divorce Settlements in New Law

Russian lawmakers are introducing a bill to recognize cryptocurrency as marital property during divorce proceedings. This move aims to clarify the legal status of digital assets and protect the property rights of spouses. This legislation follows an increasing trend in crypto use within Russia, which has become a significant player in the cryptocurrency market.

Key Takeaways

Russia's proposed legislation would classify cryptocurrencies acquired during marriage as joint property in divorce cases.
The bill seeks to amend the Family Code, providing clarity on the division of digital assets.
South Korea has already set a precedent by recognizing cryptocurrencies in divorce settlements.
Russia's cryptocurrency transactions have surged, marking the country as a leader in crypto adoption in Europe.
Institutional usage and DeFi expansion drive this crypto surge, despite ongoing regulatory challenges.

Understanding the Legislation

Russian lawmaker Igor Antropenko has put forth legislation recognizing cryptocurrency as a part of matrimonial property that must be divided during divorce. This is a significant step towards clarifying the often ambiguous legal status of digital assets in divorce cases.

As per reports, the draft bill includes changes to Articles 34 and 36 of Russia’s Family Code. It states that digital currency earned during marriage would be treated as joint property. In contrast, any crypto held before marriage or acquired without compensation would remain the individual’s asset. This proposal has been forwarded for evaluation to Prime Minister Mikhail Mishustin and Central Bank Chairwoman Elvira Nabiullina.

Central Bank Chairwoman Elvira Nabiullina. | Source: Bloomberg

Antropenko, who is a member of the State Duma Committee on Industry and Trade, pointed out that more Russians are investing in and saving with digital currencies due to the ongoing digitalization of the economy. The explanatory note for the bill highlights that the absence of regulations poses risks to property rights for one spouse, which conflicts with Article 19 of the Russian Constitution.

Interestingly, Russia has recorded $376.3 billion in cryptocurrency transactions from July 2024 to June 2025, surpassing all of Europe, according to Chainalysis.

📊 A @chainalysis report shows Russia tops Europe in crypto adoption, recording $376.3B in transfers from mid-2024 to mid-2025. What's driving the growth? #Crypto #Russia

Learning from South Korea’s Example

South Korea set a precedent in October 2024, allowing married couples to divide cryptocurrency assets during divorces. Legal firm IPG Legal confirmed that the nation now officially recognizes both tangible and intangible properties, including cryptocurrencies, as marital assets as per Article 839-2 of the Korean Civil Act.

This law enables either spouse to ask for asset division acquired during marriage when going through a divorce. It reinforces a 2018 Supreme Court ruling that recognized virtual assets as property. Furthermore, spouses can request court-led investigations if they suspect their partner is concealing crypto assets.

Unlike traditional cash transactions, blockchain technology makes tracking cryptocurrencies easier, providing transparent ledgers that cannot be altered. Couples have the option of liquidating crypto holdings prior to division or splitting tokens directly. A notable case from New York involved a woman who discovered her husband's hidden Bitcoin assets during divorce proceedings, leading to the discovery of 12 BTC valued at approximately $500,000.

Russia’s Growing Cryptocurrency Landscape

Russia's increase in cryptocurrency use has largely been driven by institutional adoption, a rise in DeFi usage, and increased reliance on stablecoins for cross-border payments. Large transactions exceeding $10 million surged by 86% during the reported timeframe, contrasting sharply with the 44% growth seen across Europe.

Russia Proposes Making Crypto Part of Divorce Settlements in New Law

Despite facing western sanctions, the ruble-pegged stablecoin A7A5 emerged as the largest non-U.S. dollar stablecoin by market cap, achieving a valuation of $500 million in early October. At the start of 2025, DeFi activity in Russia surged eightfold before settling at three and a half times the baseline level from mid-2023.

Additionally, in September, lawmaker Yevgeny Masharov proposed the establishment of a national crypto bank. This initiative aims to bring informal crypto transactions under regulation, ultimately boosting federal revenues. The introduction of a central bank digital currency is also planned for September 1, 2026, following parliamentary approval in July.

However, the country faces challenges with illegal and quasi-legal crypto mining practices, resulting in substantial losses in tax revenue and electricity costs. Experts estimate that approximately 140,000 Bitcoin and altcoin mining operations exist in Russia, most of which operate clandestinely to evade high commercial electricity rates. Recent arrests illustrate these issues, including one involving an Omsk employee who accepted a bribe to allow miners to steal power, and a St. Petersburg operator who evaded electricity meters since 2018, leading to a loss of $6.3 million to the local grid.