Russia’s State Duma Passes Major Crypto Bill on First Reading

Russia’s lower house of parliament, the State Duma, has passed the landmark “Digital Currency and Digital Rights Bill” on its first reading, a pivotal step toward bringing the country’s sprawling cryptocurrency sector under formal legal oversight for the first time.

The vote marks a significant policy shift for a government that spent years treating digital assets with deep suspicion. 

Now, under mounting pressure from Western sanctions, Moscow is moving to harness crypto rather than suppress it.

What the Bill Does

At its core, the legislation seeks to legalise cryptocurrency as a regulated asset class. It does not, however, permit crypto to be used as everyday money. 

The ruble remains Russia’s sole legal tender for domestic transactions.

The Bank of Russia is set to become the central authority over the new market. 

Under the bill, the central bank would be responsible for issuing licences to platforms, approving or blocking transactions, and defining which digital assets may legally be traded.

Cryptocurrencies would be formally classified as “property” under Russian law, a legal status that also enables their seizure in criminal proceedings, a parallel reform the Duma has been advancing separately.

Cross-Border Settlements: The Sanctions Angle

One of the bill’s most significant provisions allows crypto to be used for cross-border trade settlements. 

This covers service payments, intellectual property transfers, and other international transactions areas where Russian businesses have struggled since Western sanctions cut off access to the global banking system.

Russia’s Central Bank already treats stablecoins as “foreign digital rights,” and a ruble-pegged stablecoin called A7A5 was approved for overseas trade settlements in October 2025. 

A separate standalone stablecoin bill is also expected to be tabled in the Duma, with regulations potentially in force by July 2026.

Analysts say the cross-border crypto provisions represent Moscow’s clearest attempt yet to build financial infrastructure that operates independently of Western-controlled payment rails.

Who Can Trade, and How Much

The bill introduces a tiered investor system that draws a clear line between ordinary Russians and professional market participants.

Non-qualified investors must pass knowledge tests and will face an annual purchase cap of 300,000 rubles (roughly $3,800) through a single intermediary. 

Qualified investors including banks, professional traders, and high-net-worth individuals will face no volume limits, though they must demonstrate an understanding of crypto-related risks and will be barred from purchasing anonymous tokens.

Initially, only high-market-cap assets like Bitcoin and Ethereum will be permitted for trading, with an approved whitelist to be set by the central bank.

Russian residents will also be required to report foreign crypto wallets and any overseas transactions to the country’s tax authorities.

Domestic Cash-Out Banned

Despite the liberalisation, significant restrictions remain. 

Russian authorities have proposed prohibiting citizens from converting digital assets into cash, a measure officials say will strengthen controls over financial flows involving cryptocurrencies.

Vladimir Chistyukhin, First Deputy Chairman of the Central Bank of Russia, confirmed the restriction when answering questions about the upcoming legislative framework. 

The ban is designed to prevent cryptocurrencies from circulating outside the regulated financial system and to ensure all transactions remain traceable.

The Exchanges Are Ready

Russia’s two largest trading venues are already preparing for the new era. 

Both the Moscow Exchange and the St. Petersburg Exchange have said they plan to enter the crypto trading business as soon as the new rules are in place.

Anatoly Aksakov, head of the State Duma’s Financial Markets Committee and the chief architect of Russia’s crypto legislation, said boosting the digital financial assets market will be a key economic priority for Moscow in 2026. Aksakov has also indicated the government aims to achieve tax parity for digital asset investors, placing them on equal footing with traditional bondholders.

Critics Sound The Alarm

The bill is not without controversy. The Association of Russian Banks has pushed for a more liberal version of the law, calling for permits to transfer assets to non-custodial wallets abroad and for the whitelisting of foreign crypto platforms.

A parliamentary Committee for Protection of Competition reviewed the draft and expressed dissatisfaction with what it called “excessive rigidity,” warning that overly stringent regulations compared to global practices could push users to remain in the grey market rather than come into compliance.

Russia’s Supreme Court also weighed in on related enforcement legislation, calling a separate proposal to criminalise unlicensed crypto services premature, ahead of the broader digital currency law taking effect in July.

What Comes Next

The comprehensive framework for cryptocurrency transactions must be adopted by July 1, 2026, based on the Central Bank of Russia’s regulatory concept published in late December 2025. 

The bill must pass two further readings in the Duma before it can be signed into law.

Amendments can still be submitted ahead of the second reading. 

Given the volume of industry pushback, further modifications to investor protections, platform licensing rules, and cross-border payment terms are widely expected before the legislation is finalised.

For Russia’s estimated tens of millions of crypto holders, the passage of the first reading signals that legal certainty long absent may finally be on its way.