Russian legislators plan a decisive vote on July 21 to establish full regulations for cryptocurrency markets while maintaining the domestic ban on crypto payments. The legislation aims to create a licensing framework for exchanges and service providers while limiting retail investor access.
Regulated Framework for Cryptocurrency Trading
The draft law will recognize cryptocurrencies as property and authorize licensed exchanges, brokers, and custodians to operate under the oversight of the Bank of Russia. One key measure includes an annual purchase limit of 300,000 rubles (approximately $3,800) for non-qualified investors. Qualified investors would face fewer restrictions. Instead of personal wallet disclosures, the regulation will require reportings of balances and transactions.
Restrictions on Domestic Payments and Cross-Border Expansion
Despite these regulatory steps, cryptocurrency payments for goods and services within Russia will remain prohibited. However, the legislation intends to promote the use of digital assets for cross-border settlements, especially for businesses engaged in international trade. Officials believe this could help reduce dependence on conventional banking systems that are affected by Western sanctions.
The Finance Ministry estimates around 20 million Russians currently own cryptocurrencies. If the bill passes, it could take effect on September 1, pending the finalization of operational rules by regulators. This move might alter the structure of Russia’s digital asset sector by centralizing licensed activity and restricting retail involvement.
Market response showed minor fluctuation following the announcement of the upcoming vote.
