Russia Advances Sweeping Crypto Regulation Bill, Legalizes Cross-Border Payments and Tightens Market Controls
Russia’s lower house of parliament, the State Duma, has advanced a sweeping bill to regulate digital currencies, marking a major step toward formal oversight of the country’s crypto market.
Crypto is property
A central feature of the bill is the classification of digital currency as property. This change allows crypto holdings to be recognized in legal disputes, including bankruptcy proceedings and divorce settlements.
At the same time, the legislation maintains a strict ban on using cryptocurrency for domestic payments. The Russian ruble remains the sole legal means of payment within the country. However, the bill allows digital currencies to be used in foreign trade, offering companies a potential tool for cross-border settlements.
Supporters argue this provision could help Russian firms navigate sanctions by enabling transactions with overseas partners outside traditional financial systems.
The bill also introduces a tiered system for investors. Qualified investors will face fewer restrictions, while non-qualified participants must pass testing and may encounter annual limits on crypto purchases. Lawmakers say this structure aims to reduce risk exposure for retail investors.
Access to crypto markets will be restricted to licensed intermediaries. Direct transactions without such intermediaries are set to face tighter controls, with a broader ban scheduled to take effect in 2027. Until then, peer-to-peer transactions remain legal, though enforcement measures such as payment blocking and blacklisting mechanisms are expected to begin earlier.
The legislation also outlines rules for digital asset custody. A new digital depository system would manage crypto holdings, with restrictions on transfers to personal wallets and limitations on withdrawals to approved foreign institutions.
Mining activity is addressed within the framework, with rules requiring the use of Russian infrastructure and formal accounting of mined assets.
Despite strong support in the first reading, some lawmakers and committees have called for revisions. The State Duma Committee on Competition Protection warned that excessive regulation could hinder market development, while the Committee on Financial Markets urged greater clarity around non-custodial wallets and stronger legal safeguards for privately held assets.
The bill must pass two more readings in the State Duma before moving to the Federation Council and then to the president for signature. Amendments for the second reading are due within two weeks.
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