Key facts
- Russia has enacted a new law to regulate digital currencies and digital rights.
- The law permits the use of cryptocurrency for cross-border trade settlements.
- It establishes licensing requirements for crypto exchanges, brokers, and depositories.
- Retail investors face annual purchase limits of 300,000 rubles.
- Privacy coins are prohibited under the new regulatory framework.
Russia's State Duma has passed a new law regulating digital currencies and digital rights, marking a significant shift in the country's approach to cryptocurrencies. The legislation, which has moved through parliament this year, establishes a state-supervised framework for crypto exchanges, digital depositories, and investors. While the ruble remains the sole legal tender for domestic transactions and crypto payments are still banned, the law grants digital assets legal identity and permits their use in settling foreign trade outside the dollar-and-euro banking system targeted by Western sanctions.
Anatoly Aksakov, chairman of the Duma Committee on Financial Markets, stated the bill aims to create legal conditions for cryptocurrencies within Russia, incorporating industry feedback. Starting September 1, 2026, the Bank of Russia will license five categories of market participants: exchanges, brokers, management companies, depositories, and exchangers. Firms must meet a minimum capital requirement of 15 million rubles (approximately $190,000) and join a self-regulatory body. Exchange activity is defined as systematic purchase and sale of cryptocurrency outside organized trading, with 'systematic' set at two or more deals per month exceeding 3.5 million rubles.
The law introduces a tiered system for investors. Non-qualified retail buyers can purchase up to 300,000 rubles (around $3,800) annually through licensed intermediaries and send up to 100,000 rubles abroad. Qualified investors have higher limits, with purchases capped at 3 million rubles and foreign transfers at 1 million rubles. Both groups must pass a risk-awareness test. The tax treatment for crypto is expected to align with that of securities, with specific rates to be determined by implementing regulations. The legislation opts for monitoring transaction volumes and account balances over requiring disclosure of individual wallet addresses. Large transfers to foreign accounts will face a 48-hour hold for review.
Assets meeting strict thresholds, such as an average market cap above 5 trillion rubles and average daily volume above 1 trillion rubles, may trade on organized venues, likely confining early trading to bitcoin and ether. Privacy coins that obscure transaction data are explicitly barred. The law's main provisions are set to take effect on September 1, 2026, with a transition period for existing operators until March 1, 2027. This move follows a shift in Russia's stance, from a proposed ban on crypto in early 2022 to this current framework, influenced by Western sanctions impacting traditional trade finance.