Russia advances crypto bill with licensing rules and retail limits

Russia’s State Duma has advanced a crypto regulation bill in its first reading, outlining licensing rules, investor limits, and cross-border use provisions.

According to state news agency TASS, the proposed law assigns the Bank of Russia as the primary authority responsible for licensing market participants and supervising crypto activity across the country.

The draft sets out which entities can legally operate in the sector, including exchanges, brokers, and other financial institutions that meet regulatory requirements. Market participants already operating under the central bank’s experimental legal regime, along with banks and brokers seeking to enter the space, would be given a simplified pathway to access the market.

Retail participation is addressed through a tiered system. Non-qualified investors would face limits on how much crypto they can purchase, capped at 300,000 rubles, or about $3,900. Professional participants would not be subject to such restrictions.

Earlier government proposals had already pointed in this direction. A package approved by the Finance Ministry in March required crypto trading to be routed through licensed intermediaries, restricted retail access to high-liquidity assets defined by the Bank of Russia, and introduced mandatory testing for non-qualified investors. 

Those measures also allowed Russian users to access crypto markets through foreign accounts, provided transactions are reported to tax authorities.

Licensing remains a central part of the framework. Exchanges, custodial providers, and other service operators would be required to obtain authorization under the new regime, while banks and brokers could participate if they meet prudential standards. Administrative penalties are also planned for violations tied to unlicensed activity.

Cryptocurrency would be legally recognized as property under the bill, a classification that carries implications for legal protection.

Kaplan Panesh, deputy chairman of the State Duma Committee on Budget and Taxes, said, “This allows crypto assets to be protected in court, including in bankruptcy and divorce cases.”

Domestic payments in crypto would remain prohibited. The ruble would continue as the only legal means of settlement within Russia.

An exception is carved out for foreign trade. Companies would be allowed to use cryptocurrency in cross-border transactions, a move tied to ongoing restrictions on international payments.

“This allows Russian companies to settle with foreign counterparties in cryptocurrency, bypassing sanctions restrictions,” Panesh said.

Further approvals are still required before the legislation becomes law. The bill must pass second and third readings in the State Duma, followed by review in the Federation Council and final approval by the president. If adopted, the framework is expected to take effect on July 1, 2026.