Parliament Advances Long-Awaited Crypto Bill

Russia's State Duma approved bill No. 1194918-8, titled "On Digital Currency and Digital Rights," in its second and third readings on July 21, 2026. The measure, which classifies digital assets as property under civil law, now proceeds to the Federation Council and President Vladimir Putin for expected approval.

This legislation represents the most significant step yet in formalizing the country's cryptocurrency sector. It builds on earlier experimental permissions for mining and international settlements, creating a structured environment overseen primarily by the Bank of Russia.

Key Provisions for Market Participants and Trading

The law establishes a licensing regime for five main categories of operators: exchanges, brokers, asset managers, custodians, and exchangers. Organizations must join a special registry to conduct business legally, with existing platforms granted a transition period until July 1, 2027.

Exchanges will face minimum capital requirements, such as 15 million rubles, and must affiliate with self-regulatory organizations. Banks will be obligated to block transactions suspected of routing to unlicensed platforms. Trading will occur through approved channels, with custodial solutions emphasized for domestic users.

Investor Protections and Limits

Non-qualified retail investors must pass a knowledge and risk-awareness test before purchasing cryptocurrencies. Their annual buying limit is set at approximately 300,000 rubles (around $3,800) per licensed intermediary. Qualified investors, often determined by experience or status, face higher thresholds and broader access.

Storage for Russian residents will primarily use custodial wallets provided by regulated entities. The framework also offers judicial protection for crypto holdings, even if previously undeclared.

Domestic Ban with Cross-Border Exception

Cryptocurrencies remain prohibited for payments of goods and services within Russia, preserving the ruble's status as the sole legal tender. Advertising promoting such use is also restricted.

However, the law explicitly permits the use of digital assets for settling international trade contracts between Russian entities and foreign counterparties. This provision supports efforts to navigate sanctions and diversify payment channels amid global financial pressures.

Timeline and Implementation

Core provisions of the law are scheduled to take effect on September 1, 2026, coinciding with other digital finance initiatives such as the digital ruble rollout. A transitional period allows market participants time to obtain licenses and adapt operations.

The central bank is expected to issue numerous implementing regulations in the coming months to detail supervision, eligible assets, and compliance requirements. Industry representatives anticipate fully operational regulated activities toward late 2026 or early 2027.

Banks like Sberbank and VTB have already signaled preparations for custody and wallet services under the new rules. The legislation aims to bring significant informal trading volumes into the regulated sphere while mitigating risks to ordinary citizens.