Russia Passes Major Crypto Regulation Bill: Legalizes Cross-Border Payments, Tightens Market Controls

Russia Advances Sweeping Crypto Regulation Bill in First Reading

The State Duma, Russia’s lower house of parliament, has approved a comprehensive bill to regulate digital currencies, marking a significant step toward formal oversight of the country’s crypto market. Lawmakers passed the draft legislation in its first reading with 327 of 340 deputies voting in favor.

The bill, titled “On Digital Currency and Digital Rights,” was introduced by the Russian government and establishes a detailed framework for the issuance, trading, and storage of cryptocurrencies. If enacted, the law will take effect on July 1, 2026, though certain provisions will be implemented at later dates.

Key Provisions of the Bill

The legislation defines critical legal terms, including the “circulation of digital currency” and the “organization of digital rights circulation.” It also outlines the entities permitted to operate in the market, introducing five categories of regulated participants:

• Exchanges
• Brokers
• Management companies
• Depositories
• Exchangers

All participants must obtain licenses and operate under the supervision of the Bank of Russia. The central bank will have the authority to authorize, regulate, and oversee these entities, including the power to impose transaction limits and compliance requirements.

Crypto Classified as Property

A central feature of the bill is the classification of digital currency as property. This change enables crypto holdings to be recognized in legal disputes, including bankruptcy proceedings and divorce settlements. However, the legislation maintains a strict ban on using cryptocurrency for domestic payments, with the Russian ruble remaining the sole legal tender within the country.

The bill permits the use of digital currencies in foreign trade, offering companies a potential tool for cross-border settlements. Proponents argue this provision could help Russian firms navigate sanctions by facilitating transactions with overseas partners outside traditional financial systems.

Investor Protections and Market Access

The legislation introduces a tiered system for investors. Qualified investors will face fewer restrictions, while non-qualified participants must pass testing and may encounter annual limits on crypto purchases. Lawmakers state this structure aims to reduce risk exposure for retail investors.

Access to crypto markets will be restricted to licensed intermediaries. Direct transactions without such intermediaries are set to face tighter controls, with a broader ban scheduled to take effect in 2027. Until then, peer-to-peer transactions remain legal, though enforcement measures such as payment blocking and blacklisting mechanisms are expected to begin earlier.

Digital Asset Custody and Mining Rules

The bill outlines rules for digital asset custody, introducing a new digital depository system to manage crypto holdings. The system will impose restrictions on transfers to personal wallets and limit withdrawals to approved foreign institutions.

Mining activities are addressed within the framework, with rules requiring the use of Russian infrastructure and formal accounting of mined assets.

Concerns Over Excessive Regulation

Despite strong support in the first reading, some lawmakers and committees have raised concerns. The State Duma Committee on Competition Protection warned that excessive regulation could hinder market development.

NEW: Russia passes first reading of bill that would clarify Bitcoin and crypto as property and allow it in foreign trade — Russian state owned TASS pic.twitter.com/hV7FxYv83A — Bitcoin Magazine (@BitcoinMagazine) April 22, 2026