Russia’s State Duma is set to finalize its crypto regulation bill, “Digital Currency and Digital Rights,” with second and third readings scheduled for July 21, 2026.
The legislation introduces licensing requirements, investor caps, and regulated pathways for cross‑border crypto transactions, while maintaining a strict ban on domestic crypto payments.
Russia’s Next Big Move
The bill, formally titled “Digital Currency and Digital Rights” (No. 1194918‑8), represents Russia’s most comprehensive attempt to regulate digital assets.
It establishes a licensing regime administered by the Bank of Russia, legally recognizes digital assets as property rights, and introduces a two‑tier investor protection system.
Under the framework, non‑qualified investors will face annual purchase caps of approximately 300,000 rubles (around $4,000), while qualified investors will have no such limits.
Licensed platforms will also act as tax agents, withholding income tax directly from crypto investors.
The bill passed its first reading in April with overwhelming support—327 out of 340 lawmakers voted in favor.
The official source of the legislation is the State Duma of the Russian Federation, with oversight and implementation delegated to the Bank of Russia. The Financial Market Committee has been the lead body in refining the bill’s text, ensuring alignment with Russia’s broader financial policy objectives.
The Financial Market Committee approved the text on July 8, clearing the way for final readings. If adopted without major amendments, key provisions will take effect on September 1, 2026, with unlicensed platforms facing outright bans starting July 2027.
Finalization Came After Regulation Struggles
The bill’s first reading was in April, and was initially expected to be finalized by July 1, 2026. Delays stemmed from incompletion of review, which the Ministry of Finance deemed “necessary” to ensure that the legislation is comprehensive and enforceable.
The reforms come against the backdrop of Western sanctions, which have cut Russia off from traditional financial infrastructure, such as SWIFT.
Through creation of regulated pathways for cross‑border crypto transactions, Russia is effectively building an alternative financial bridge to facilitate international trade.
Importantly, the bill does not name specific cryptocurrencies, keeping the framework deliberately broad to accommodate whichever digital assets prove most useful for sanctioned trade flows.
A companion measure, draft No. 1194929‑8, extends the regulatory architecture beyond a single piece of legislation, signaling a multi‑layered approach.
For domestic users, however, the strict ban on crypto payments means everyday utility remains off the table. Russians will not be able to use Bitcoin or Ether for routine purchases, but trading and cross‑border use cases are expected to grow under the new framework.
