Russia State Duma finalises crypto regulation bill on Tuesday

Russia’s lower house approved the “On Digital Currency and Digital Rights” bill on July 21, moving the law toward a September 1 implementation and creating a licensing framework for crypto exchanges, brokers and custodians [1]. The vote clears the way for Russian companies to use digital tokens for foreign trade while keeping domestic crypto payments banned, a shift that could reshape how sanctioned firms settle overseas invoices.

Legislative details and market impact

The bill establishes a government‑issued permit system administered by the Bank of Russia, requiring exchanges, brokers and custodians to be listed in a special registry. Unlicensed platforms must cease operations by July 1, 2027 [1][3]. Only cryptocurrencies with a market capitalization above 5 trillion rubles (about $65 bn) and at least five years of verified trading on a licensed foreign exchange qualify, currently limiting legal trading to Bitcoin and Ethereum, with possible additions such as Solana or TON [1]. Retail investors face an annual purchase limit of 300,000 rubles per intermediary, while professional investors have no cap but remain barred from privacy coins like Monero, Zcash and Dash [1][3].

The regulation aims to preserve the ruble’s domestic primacy while giving Russian firms a sanctioned channel to pay foreign partners in crypto, effectively bypassing Western banking restrictions [1]. The law also grants judicial protection to crypto holders and mandates banks to refuse transfers linked to unregistered exchanges [3]. This dual approach—tight domestic controls paired with sanctioned international use—reflects Moscow’s strategy to mitigate sanctions pressure while maintaining financial stability.

Market response and industry positioning

Major banks such as VTB and T‑Bank have already announced plans to build crypto depositories, signaling early institutional alignment with the new framework [1]. The limited list of eligible tokens and the modest retail cap suggest that most on‑chain activity will remain concentrated among institutional players and large‑scale investors. The law does not lift the longstanding ban on using crypto for everyday payments, meaning consumer‑level adoption within Russia stays constrained [1][3].

What to watch

• Regulatory milestones: Senate approval and President Putin’s signature, expected within two weeks of the Duma vote [1].
• License rollout: The Bank of Russia’s issuance of exchange and custodian permits, which will determine which platforms can operate legally.
• Token eligibility list: Publication of the top five‑to‑ten tradable cryptocurrencies, likely confirming Bitcoin and Ethereum and possibly adding SOL or TON [1].

The bill marks Russia’s first comprehensive crypto framework, balancing sanction‑evasion needs with strict domestic controls. How effectively the licensing regime will be enforced and which additional tokens gain approval will shape the country’s crypto market trajectory in the coming months.