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Russia Takes Major Steps to Regulate Crypto Market with New Legislation

Russia is accelerating efforts to regulate its burgeoning crypto market with a newly advanced bill aimed at legitimizing digital assets.

The State Duma, the country's lower legislative body, recently passed the bill "On Digital Currency and Digital Rights" during its first reading.

Passed with a significant majority, the bill is part of a broader strategy to bring the cryptocurrency sector out of ambiguity and establish clearer operational frameworks.

If the bill clears its subsequent readings and receives presidential approval, it is set to take effect on July 1, 2026.

Crucially, the legislation categorizes digital assets as property, paving the way for the Central Bank of Russia to oversee and regulate the market.

Only licensed participants, including exchanges and brokers approved by the Central Bank, will be permitted to operate, ensuring a controlled regulatory environment.

While the bill prohibits domestic use of cryptocurrencies for regular transactions to preserve the ruble as the sole legal tender, it allows for cross-border settlements, providing a mechanism to circumvent sanctions.

In a significant move to protect investors, the legislation introduces restrictions on crypto purchases for non-qualified investors and requires them to pass a knowledge test.

This comprehensive approach aims to rectify the existing gray market surrounding digital assets in Russia, offering legal protection to individuals already holding such assets.

As the legislative process continues, this bill represents a pivotal shift in Russia's stance on cryptocurrencies, emphasizing regulatory oversight alongside innovation.