Russia Passes Law Regulating Crypto Market

Russian lawmakers have moved the country closer to adopting its first broad regulatory framework for cryptocurrencies after approving a digital asset bill in its final readings. The State Duma, Russia’s lower house of parliament, passed bill No. 1194918-8, titled “On Digital Currency and Digital Rights,” in its second and third readings on Tuesday, according to official parliamentary records.

If enacted, the legislation would introduce rules for crypto exchanges, brokers, asset managers, custodians and other service providers. It would also permit the use of crypto assets in foreign trade transactions. The bill represents Russia’s most significant legislative move toward a regulated crypto market so far. However, it must still receive approval from the Federation Council and be signed by President Vladimir Putin before becoming law.

Central bank to oversee the regulated market

Under the proposed framework, the Bank of Russia would receive extensive supervisory powers. These would include deciding which crypto assets may be offered through licensed intermediaries and issuing the regulations needed to implement the law. The bill defines five categories of regulated participants: crypto exchanges, brokers, asset managers, custodians and exchange service providers. These entities would be authorized to facilitate the purchase, sale, custody and exchange of digital assets.

Different limits would apply to qualified and non-qualified investors. Non-qualified investors would be allowed to purchase up to 300,000 rubles, or approximately $3,800, in crypto annually through a single intermediary and transfer up to 100,000 rubles abroad.

Qualified investors would face higher annual limits of 3 million rubles for purchases and 1 million rubles for overseas transfers. The use of crypto to pay for goods and services within Russia would remain prohibited. However, digital assets could be used in foreign trade, supporting Russia’s wider push to develop cross-border settlement methods outside conventional payment networks.

Implementation planned for 2026

Most provisions would take effect on Sept. 1, 2026, if the bill is signed into law. A transition period would continue until July 1, 2027, giving companies time to adapt to the new requirements. Once that period ends, crypto transactions would have to be carried out through regulated organizations. Banks would also be required to reject transactions that fall outside the framework.

Russian lawmakers are separately developing rules on crypto taxation and penalties for noncompliance. A related tax bill has already passed its first reading, while legislation covering violations is expected before the transition period concludes.

Olga Goncharova, head of the Digital Financial Assets and Digital Currencies Expert Center at the Association of Russian Banks, said further regulation would still be required before the market could function effectively. “The law itself is only the beginning,” Goncharova told Cointelegraph, adding: “Whether it works in practice depends on several mechanisms that are still being developed by the banking community together with the Bank of Russia.”

She said the central bank intends to issue around 80 additional regulatory acts by the end of the year. The banking sector and the Bank of Russia are also developing supporting infrastructure, including a domestic Travel Rule system, blockchain node infrastructure and crypto analytics tools.

Sources:

https://cointelegraph.com/news/russias-parliament-passes-law-regulating-crypto-market

https://sozd.duma.gov.ru/bill/1194918-8