Russia crypto law passes final Duma reading, two votes from approval

Russia’s State Duma approved the comprehensive “On Digital Currency and Digital Rights” bill in its second and third readings on July 21, moving the measure two votes away from becoming law after Senate and presidential sign‑off【3】. The legislation creates a state‑supervised licensing regime, caps retail crypto purchases and legalises cross‑border crypto settlements, a shift that could reshape Russia’s ability to bypass Western sanctions.

Licensing and market structure

The bill establishes five categories of licensed participants—exchanges, brokers, management companies, depositories and exchangers—under the Bank of Russia’s oversight, each required to hold at least 15 million rubles (≈ $190,000) in capital【1】. Firms joining a special registry can operate on a grace period until July 1 2027, after which full licensing applies. The framework also mandates a self‑regulatory body and introduces a “systematic” trading definition (two or more deals a month above 3.5 million rubles)【1】. These provisions aim to bring crypto activity inside a monitored “fence,” allowing the state to tax and control the market while keeping the ruble as the sole legal tender for domestic purchases【1】.

Investor limits and cross‑border use

Non‑qualified retail investors may buy up to 300,000 rubles of crypto annually through a single licensed intermediary and send up to 100,000 rubles abroad, while qualified investors face higher ceilings—3 million rubles for purchases and 1 million rubles for foreign transfers【1】【2】. Both groups must pass a risk‑awareness test. The law maintains the ban on using crypto for domestic goods and services, but explicitly permits crypto settlements for foreign trade, offering a sanctioned channel for Russian firms cut off from SWIFT and traditional banking【1】【2】. Large outbound transfers trigger a 48‑hour hold for regulatory review【1】.

Market impact and next steps

The legislation does not name specific tokens, keeping the scope broad to accommodate assets useful for international trade. Expected market‑cap thresholds (average > 5 trillion rubles over two years) and daily‑volume benchmarks (> 1 trillion rubles) suggest early trading will likely be limited to Bitcoin, Ether and possibly Solana【1】. The bill’s passage follows a series of prior attempts—an August 2024 experimental law and a 2022 outright ban—reflecting a sharp policy reversal driven by sanctions pressures【1】. Additional regulatory acts, including a domestic Travel Rule system and blockchain infrastructure, are slated for issuance by the end of the year【2】.

What to watch

• September 1 2026 – Commencement of licensing requirements and the first day the framework becomes operational.
• July 1 2027 – Deadline after which unlicensed platforms must cease crypto activities or face bans.
• Regulatory detail rollout – Bank of Russia’s planned ~80 supplemental acts, including Travel Rule implementation, will define practical compliance for licensed entities【2】.

The law signals Russia’s intent to institutionalise crypto as a tool for circumventing sanctions while keeping domestic use tightly controlled. How effectively the licensing regime and the forthcoming regulatory toolkit will enable cross‑border settlements remains to be seen.