Russian President Vladimir Putin has signed into law the country’s first comprehensive legislation governing digital currencies and digital rights. The measure, known as bill No. 1194918-8 and titled “On Digital Currencies and Digital Rights,” establishes licensing requirements, investor access rules, and oversight mechanisms for cryptocurrency activity after years of limited formal regulation.

The State Duma, Russia’s lower house of parliament, approved the bill in late July. Official records confirm the presidential signing, which shifts the country from a largely restrictive stance toward a structured, supervised market for licensed participants.

Licensing Requirements for Market Participants

The law requires cryptocurrency exchanges, brokers, custodians, and related service providers to operate under state supervision. Only firms placed on a special government registry will be authorized to run exchanges. Operators must hold at least 15 million rubles in capital, equivalent to roughly 187,000 dollars, and join a financial market self-regulatory organization.

Existing platforms receive a transition period, with full compliance required by July 1, 2027. Firms whose monthly trading volume exceeds 3.5 million rubles fall under the complete set of rules. Banks, including branches of foreign lenders, must refuse transfers they suspect are directed to unregistered providers.

The Bank of Russia will oversee the regulated market. Its responsibilities include issuing detailed rules and determining which digital assets licensed intermediaries may offer.

Retail and Qualified Investor Rules

Retail investors gain limited access to approved, highly liquid cryptocurrencies through licensed intermediaries. Purchases are capped at 300,000 rubles, approximately 3,700 dollars, per intermediary each year. Both retail and qualified investors must complete a knowledge assessment before trading.

Qualified investors face no annual purchase limit and may acquire any cryptocurrency permitted under the framework. The law also provides court protection for holders of crypto assets regardless of whether ownership was previously declared to authorities.

Domestic Payments Remain Prohibited

Despite the new trading framework, cryptocurrency cannot serve as legal tender or payment for goods and services inside Russia. The law maintains the existing ban and prohibits advertising that promotes crypto as a means of payment. This distinction separates regulated investment activity from any attempt to create a parallel currency.

Most provisions of the legislation become effective on September 1, 2026. That date coincides with the Central Bank of Russia’s timeline for financial institutions to support the digital ruble, reinforcing the national currency’s central role in the domestic monetary system.

Cross-Border Settlements Permitted

The law creates exceptions for international activity. Settlements under foreign trade contracts between Russian residents and non-residents are allowed. Transactions involving mined cryptocurrencies and payments within authorized digital asset platforms are also permitted.

These provisions offer regulated pathways for cross-border commerce at a time when traditional payment channels face external restrictions. Counterparties outside Russia remain subject to their own jurisdictions’ sanctions, anti-money-laundering rules, and other requirements.

Mining of cryptocurrency had already been legalized under earlier legislation signed in 2024. The new law fills the previous gap by addressing trading, custody, and related services.

Implementation Timeline and Oversight

Core rules begin on September 1, 2026. Additional requirements covering non-resident digital depositories take effect on July 1, 2027. Market participants must adapt operations to meet licensing, capital, and self-regulatory standards or face restrictions.

The Bank of Russia will define the list of cryptocurrencies eligible for retail trading based on liquidity criteria. Until that list is published, the precise scope of assets available to ordinary investors remains undetermined.

The legislation grants crypto holders formal legal recognition and access to supervised venues while concentrating supervisory authority with the central bank. It expands regulated investment channels and cross-border settlement options without altering the prohibition on domestic use as money.