Russia's State Duma passed Bill No. 1194918-8 on July 21, establishing the country’s first full legal framework for cryptocurrencies. The legislation categorizes digital assets as property rather than currency and is now headed to President Vladimir Putin for approval.

Details of the New Crypto Legislation

According to Rossiyskaya Gazeta, the bill, titled "On Digital Currency and Digital Rights," was approved in its second and third readings, moving next to the Federation Council before reaching the president's desk. Anatoly Aksakov, chair of the Duma’s Financial Markets Committee, explained the goal was to create clear legal conditions for cryptocurrency operations within Russia.

The law defines bitcoin and other digital tokens as property under civil law, maintaining the ruble as the sole legal tender domestically. The Bank of Russia will oversee licensing of five categories of market participants: exchanges, brokers, custodians, management companies, and exchangers. Banks will be prohibited from processing payments to unlicensed foreign platforms. A transition period will extend until July 1, 2027, for existing operators to comply with licensing requirements.

Retail investors face annual purchase limits set at 300,000 rubles (approximately $3,800) through licensed intermediaries, with a required risk-awareness test before buying. Qualified investors have a higher annual cap of about 3 million rubles. Privacy-focused coins are excluded for anti-money laundering reasons, focusing trading mostly on assets such as bitcoin, ethereum, and USDT.

A significant provision allows Russian companies to use cryptocurrencies for international trade settlements, an important alternative to SWIFT following Russia’s exclusion in 2022. Domestic crypto payments will remain prohibited. The Finance Ministry estimates daily domestic crypto trading volume near 50 billion rubles ($640 million), largely unregulated until now. The new legislation aims to transition this activity into licensed channels.

The Federation Council is expected to review the bill within 14 days, followed by a 14-day period for Putin’s signature. These steps are viewed as formalities. If signed as planned, key parts of the law will take effect on September 1, 2026, coinciding with Russia’s rollout of the digital ruble at major banks and retail outlets.

This article is for informational purposes and does not constitute financial advice.