Russia's Lawmakers Advance Comprehensive Crypto Market Regulation Bill

Russia’s lawmakers moved the country closer to its first comprehensive crypto market framework after completing final readings on a bill that would regulate digital asset activity.

Russia’s State Duma, the lower house of parliament, approved bill No. 1194918-8, titled “On Digital Currency and Digital Rights,” in its second and third readings on Tuesday, according to official parliamentary records.

If enacted, the bill would establish rules for crypto market participants, including exchanges, brokers, asset managers and custodians, while allowing crypto assets to be used in foreign trade operations.

The vote marks Russia’s biggest legislative step toward a regulated crypto market to date, although the bill still requires approval by the Federation Council and President Vladimir Putin’s signature before it becomes law.

Russia gives central bank key role in crypto framework

The bill would give the Bank of Russia broad oversight of the regulated market, including authority to determine which crypto assets may be offered through licensed intermediaries and to issue implementing regulations.

It would also establish five categories of regulated market participants — crypto exchanges, brokers, asset managers, custodians and exchange service providers — defining who can buy, sell, hold and exchange crypto assets under the new framework.

The bill introduces different rules for qualified and non-qualified investors. Non-qualified investors would face a 300,000-ruble (about $3,800) annual limit on crypto purchases through a single intermediary and a 100,000-ruble limit on transfers abroad. Qualified investors would face annual limits of 3 million rubles for purchases and 1 million rubles for transfers abroad.

The bill would continue to prohibit the use of crypto assets to pay for goods and services inside Russia. At the same time, it would allow crypto assets to be used in foreign trade operations, reflecting Russia’s broader effort to facilitate cross-border settlements outside traditional payment infrastructure.

Implementation expected to begin in 2026

Most of the bill’s provisions would take effect on Sept. 1, 2026, if the president signs the bill into law. Lawmakers also included a transition period through July 1, 2027, giving market participants time to comply with the new rules.

After the transition period ends, market participants would have to conduct crypto transactions through regulated organizations. Banks would also have to reject transactions that do not comply with the new framework, according to the bill.

Russian lawmakers are also working on related draft bills covering crypto taxation and penalties for violations of the new framework. A separate tax bill has already passed its first reading, while lawmakers expect bills establishing penalties for violations to pass before the transition period ends.

Law is only the first step

Olga Goncharova, head of the Digital Financial Assets and Digital Currencies Expert Center at the Association of Russian Banks, said the bill would create a legal framework but would still require extensive follow-up regulation before the market can operate.

“The law itself is only the beginning,” Goncharova told Cointelegraph, adding: “Whether it works in practice depends on several mechanisms that are still being developed by the banking community together with the Bank of Russia.”

Goncharova said the Bank of Russia plans to issue about 80 additional regulatory acts by the end of the year to define how the new framework will work in practice. She added that she expects the president to sign the bill into law in the coming days.

She also said the banking industry and the central bank are developing key infrastructure, including a domestic Travel Rule system, blockchain node infrastructure and crypto analytics tools, to support the regulated market.