Russia’s State Duma to hold final vote on first comprehensive crypto law

The Russia crypto law moved closer to becoming a reality on Tuesday as Russia’s State Duma prepared to hold the final two votes on the country’s first comprehensive cryptocurrency legislation.

The bill, titled “On Digital Currency and Digital Rights,” establishes a nationwide regulatory framework for crypto exchanges, brokers, custodians, and investors. If approved by the lower house, the Russia crypto law will proceed to the Federation Council for Senate approval before requiring President Vladimir Putin’s signature. Lawmakers expect the process to conclude within two weeks, allowing the legislation to take effect on September 1.

Russia crypto law creates nationwide licensing framework

The proposed Russia crypto law introduces a licensing regime that places the Bank of Russia at the center of the country’s cryptocurrency oversight.

Under the legislation, cryptocurrency exchanges, brokers and custodians will be required to obtain government-issued licenses before offering services in Russia. The central bank will also gain the authority to determine which cryptocurrencies may legally circulate within the country and reject assets it considers a threat to financial stability.

Even before the Russia crypto law has been formally adopted, major financial institutions are preparing for the new regulatory environment. Russian banking giants VTB and T-Bank have already announced plans to establish cryptocurrency custody services.

The bill also introduces strict eligibility requirements for digital assets. Only cryptocurrencies with a market capitalization exceeding 5 trillion rubles (approximately $65 billion) and at least five years of verified trading history on licensed foreign exchanges would qualify for legal trading.

According to Alexandra Fedotova, a lawyer at White Stone who has closely followed the legislation, Bitcoin and Ethereum are expected to be among the approved assets.

“These will definitely include BTC and ETH. Possibly SOL or TON may be added, given their popularity in Russia. Everything else is only for qualified investors.” — Alexandra Fedotova, Lawyer, White Stone.

For retail investors, the legislation imposes an annual purchase limit of 300,000 rubles (about $3,800) through a single licensed intermediary. Qualified professional investors will not face purchase caps but will still be prohibited from acquiring privacy-focused cryptocurrencies.

Fedotova explained why those assets remain excluded.

“The CBR directly states: you cannot buy coins that hide recipients. If you can’t build a transaction graph and see where the money came from, such an asset will not pass AML verification.” — Alexandra Fedotova, Lawyer, White Stone.

Russia crypto law limits domestic crypto payments

Although the Russia crypto law significantly expands the legal framework for cryptocurrency ownership and trading, it does not legalize digital assets as a domestic payment method.

The legislation clearly distinguishes between purchasing cryptocurrency and using it for everyday transactions. Russians will still be prohibited from paying for goods and services with Bitcoin or other cryptocurrencies inside the country. The Russian ruble will remain the nation’s only legal tender for domestic commerce.

Instead, lawmakers designed the legislation to facilitate international settlements, allowing Russian businesses to use cryptocurrency when making payments to foreign counterparties. The measure is widely viewed as part of Moscow’s broader effort to reduce reliance on traditional banking systems affected by Western sanctions.

During the bill’s first reading in April, Kaplan Panesh, Deputy Chair of the State Duma’s Budget and Taxes Committee, explained the reasoning behind the proposal.

“This allows Russian companies to use cryptocurrency to pay foreign counterparties, circumventing sanctions restrictions.” — Kaplan Panesh, Deputy Chair, State Duma Budget and Taxes Committee.

The Russia crypto law therefore balances two objectives: preserving the ruble as the country’s sole legal payment instrument while enabling cross-border transactions through digital assets.

Russia crypto law completes broader digital asset strategy

The Russia crypto law represents the latest step in Russia’s long-term effort to establish a comprehensive digital asset framework.

Since Western sanctions intensified following Russia’s invasion of Ukraine in 2022, Moscow has increasingly explored cryptocurrency as an alternative channel for international trade and financial settlements. The European Union has simultaneously tightened restrictions on crypto transactions involving Russian entities, adding urgency to domestic regulatory reforms.

President Vladimir Putin signed legislation legalizing cryptocurrency mining in August 2024, helping Russia become one of the world’s largest Bitcoin-producing nations. The new Russia crypto law builds upon that foundation by introducing clear rules governing cryptocurrency trading, custody and investment.

If enacted, the legislation will also establish a transition period before enforcement becomes stricter. Beginning July 1, 2027, unlicensed cryptocurrency platforms will be prohibited from operating within Russia, effectively consolidating the market under regulated institutions.

With only two parliamentary votes remaining before advancing to the Senate, the Russia crypto law is poised to become the country’s most significant cryptocurrency legislation to date, reshaping how digital assets are traded, stored and used within Russia for years to come.