Russia's State Duma has passed the first reading of a crypto regulation bill that classifies cryptocurrencies as property and permits their use in cross-border and foreign trade settlements. The move is partly aimed at supporting international payments amid ongoing sanctions. However, crypto remains banned for domestic payments involving goods and services, with the ruble remaining the sole legal tender.
The bill introduces a tightly controlled framework, assigning the Bank of Russia authority to approve and supervise market participants, including exchanges, brokers, and custodial entities. All must meet strict regulatory standards before operating. Banks and brokers already working under Russia's experimental legal regime can enter the crypto sector through a streamlined process, while unregulated intermediaries face enforcement and penalties.
Under the tiered system, non-qualified investors face a cap on crypto purchases of 300,000 rubles (approximately $3,900). Professional participants can operate without purchase restrictions, aiming to balance market access with risk control. The bill also includes provisions for crypto mining, requiring operations to use domestic infrastructure and follow reporting standards.
The bill still needs second and third readings in the State Duma, followed by further institutional review. If approved, Russia plans to implement the framework starting July 1, 2026. The move signals Russia's intent to formalize digital asset activity under strict central oversight while using crypto to circumvent financial restrictions.
