Russia's State Duma is set to hold the second and third readings of a landmark cryptocurrency regulation bill on July 21, paving the way for a comprehensive legal framework for digital assets. The draft legislation, which recognizes cryptocurrencies as property, will create a regulated trading environment while maintaining the ban on their use for domestic payments. Instead, it will authorize licensed exchanges, brokers, and custodians to operate under the supervision of the Bank of Russia, focusing primarily on enabling cross-border settlements for businesses.
The bill introduces distinct tiers for investors. Non-qualified retail investors will be required to pass a risk assessment test and will face an annual purchase limit of RUB 300,000 (approximately $3,800) through a single intermediary, with overseas transfers capped at RUB 100,000 per year. In contrast, qualified investors will enjoy significantly higher limits of up to RUB 3 million in purchases and RUB 1 million in foreign transfers annually. To minimize exposure to volatile assets, retail investors will only be allowed to trade highly liquid cryptocurrencies such as Bitcoin and Ethereum.
Privacy rules have been revised: an earlier requirement to disclose wallet addresses was dropped, and instead, users will report balances and transactions. A new 48-hour freeze on certain large transfers sent overseas or to third parties aims to combat fraud. Most provisions are slated to take effect on September 1, though related bills introducing criminal penalties (including up to 7 years in prison for organizing illegal crypto circulation) have been postponed to the fall session. The outcome of the July 21 vote is poised to significantly shape Russia’s crypto sector and its role in international trade.
