The Russian parliament has adopted a long-awaited law legalizing various crypto transactions such as investment and trading while banning others.
The legislation introduces rules for participants in a regulated market for digital assets, determines who will be able to own them and what they can be used for.
Russian lawmakers pass delayed ‘digital currency’ bill
The lower house of Russia’s legislature, the State Duma, has passed the law “On Digital Currency and Digital Rights” in its second and third readings.
The move represents Moscow’s most comprehensive attempt to regulate the country’s growing crypto market and the circulation of decentralized money.
Based on a new policy released by the Central Bank of Russia in December, the almost 300-page document was submitted in April, when it overcame its first hurdle.
Following some delay, bill No. 1194918-8 was backed by 340 Russian deputies after its final consideration in the chamber on Tuesday, media reports detailed.
Its provisions establish the main framework for operations with cryptocurrencies, including issuance, mining, and storage, and for the first time give Russians legal access to them.
They also update existing rules for the turnover of digital financial assets (DFAs), enforced earlier with a separate law which treats instruments such as tokenized securities.
State-approved exchanges will host crypto trading
The new legislation lists key participants in the cryptocurrency market and regulates their relations, including among themselves, with clients and state institutions.
Trading will be conducted exclusively on licensed and registered exchanges while special “digital depositories” will provide safekeeping and accounting services.
Brokers and management firms will take the role of intermediaries between Russian exchanges and investors as well as between Russian traders and foreign platforms.
Involved organizations will meet specific requirements. For example, exchanges will need at least 15 million rubles of capital, while clearing houses will be able to work without brokers.
Crypto investments permitted, payments banned
The passed bill also determines which cryptocurrencies will be admitted to the Russian economy and what can be done with them, leading media outlets such as TASS, RBC and Kommersant noted.
Initially, mainly digital coins with large capitalizations will be widely available for trading. According to earlier official statements, BTC, ETH, and USDT meet the current criteria.
These assets will be made available to the general public as investment instruments. All who wish to purchase them will have to undergo tests to check their knowledge and awareness of the risks.
Non-qualified investors, or ordinary Russian citizens, will be able to buy only the most liquid assets and their portfolios will be capped by the Bank of Russia.
The threshold hasn’t been specified yet, but a previously discussed purchase limit was set at 300,000 rubles a year (less than $4,000) through a single intermediary.
Qualified investors will have the opportunity to acquire any cryptocurrency without such restrictions. The status can be acquired by gaining sufficient experience.
Only custodial wallets allowed for users in Russia
Both categories of Russian investors will be allowed to store digital coins and conduct crypto transactions using only custodial wallets.
Foreign-based traders will be able to employ self-hosted wallets, while the restrictions for Russian residents will not apply to non-custodial wallets abroad.
Russian lawmakers are prohibiting the use of cryptocurrency as a means of payment for goods and services inside the country.
This means that the national fiat, the ruble, including in its upcoming digital form, will remain the only legal tender in the Russian Federation.
However, key exceptions will be made. Businesses and other entities will be permitted to use crypto in foreign trade under sanctions and exchanges will be allowed to spend it on other digital assets.
New crypto law to enter into force in September
The main provisions of the “digital currency” law will come into force on September 1, 2026 while the rest, including specific restrictions on money transfers, will take effect in the second half of 2027.
Its authors are introducing a transitional period, until March 1, 2027, to give the operators of existing digital-asset platforms enough time to secure the necessary regulatory approvals.
The implementation of the new legislation will require the adoption of a number of supplementary regulations, which will be the responsibility of Russia’s central bank.
According to its Deputy Governor Vladimir Chistyukhin, the monetary authority will have to prepare more than 30 such documents by November.
Representatives of the Russian crypto industry expect fully regulated activities in the sector to effectively begin late this year or in early 2027.
The law still needs the approval of the Federation Council, also known as Russia’s Senate, and the signature of President Vladimir Putin.