Russia is getting serious about crypto. The country's parliament is about to take its last two votes on a broad new law that would set strict rules for buying, selling, and holding digital currencies.
Under the proposed law, a cryptocurrency must have been traded on a licensed foreign exchange for at least five years and have a market capitalization above 5 trillion rubles (roughly $65 billion). Non-professional investors are limited to buying up to 300,000 rubles (roughly $3,800) each year via one licensed platform. That means if you want to buy more, you need to be a qualified investor.
The Bank of Russia will be in charge of handing out permits to crypto exchanges, brokers, and custodians. Additionally, it can prohibit any digital currency that it considers a risk to financial stability.
The timing is no accident. Western sanctions have targeted Russia since 2014, and they intensified greatly following the 2022 invasion of Ukraine. The bill is meant to give Russian companies a way to pay foreign partners using cryptocurrency, sidestepping the traditional banking system.
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"This allows Russian companies to use cryptocurrency to pay foreign counterparties, circumventing sanctions restrictions," said Kaplan Panesh, who holds the role of deputy chairman on the State Duma's committee on budget and taxes.
The law has been delayed before. It was originally supposed to take effect on July 1, but coordination problems between government agencies pushed it back. Now the Duma is expected to finish its votes on Tuesday.
After that, the Senate and President Putin need to sign off, which committee chairman Anatoly Aksakov expects to take about two weeks. If all goes smoothly, the law would take effect on September 1.
In August 2024, Putin signed a separate law legalizing crypto mining in Russia. This comprehensive trading law would be the next piece of the puzzle. The mining legislation, effective since November 2024, allows registered firms and individual miners to operate under energy quotas, while the trading law imposes strict controls on crypto exchanges and investor access. Together, they form a cohesive framework to integrate digital assets into Russia's economy without exposing the financial system to undue risk.
Based on Alexandra Fedotova, an attorney at White Stone who has monitored the bill, the first set of approved cryptocurrencies will be restricted. "These will definitely include BTC and ETH," she said. "Possibly SOL or TON may be added, given their popularity in Russia. Everything else is only for qualified investors."
The anti-money-laundering rules are strict. "The CBR directly states: you cannot buy coins that hide recipients," Fedotova explained. "If you can't build a transaction graph and see where the money came from, such an asset will not pass AML verification."
Consequently, privacy-focused digital currencies such as Monero, Zcash, and Dash are completely prohibited. Only professional investors could access a wider range of assets.
Starting July 1, 2027, platforms without a license will be entirely prohibited.
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