Market News

Russia Embraces Crypto as Property While Limiting Domestic Use

In a significant move, Russia’s State Duma has passed a crypto regulation bill acknowledging cryptocurrencies like Bitcoin and Ethereum as property.

This bill, known as "On Digital Currency and Digital Rights," allows for the use of cryptocurrencies in cross-border payments and foreign trade, marking a critical step for crypto integration in the country.

However, the usage of crypto for everyday transactions within Russia remains strictly prohibited, with the ruble continuing as the sole legal currency for domestic purposes.

Additionally, crypto mining has been legalized under strict regulations, requiring miners to register their equipment with the government.

The Bank of Russia will oversee all crypto activities, ensuring exchanges and brokers are properly licensed and monitored.

Investors will be categorized into qualified and non-qualified groups, with the latter facing limits on their investments to mitigate risk.

If finalized, this law is set to take effect on July 1, 2026, allowing time for necessary adjustments.

This new framework aims to bring structure to the over 20 million crypto users in Russia, signaling a cautious but definitive embrace of the digital currencies.

While Russia opens its doors to cryptocurrency, it does so within a confined system that prioritizes regulatory control.

As the crypto landscape evolves, stakeholders will be watching how these regulations unfold in practice.