Russia’s lower house of parliament, the State Duma, passed the first reading of a landmark bill on Tuesday, in an assertive step toward bringing the country’s sprawling digital currency market under state control.
The legislation, draft bill No. 1194918-8, establishes a legal bridgehead for a regulated ecosystem in which crypto trading is channeled through licensed intermediaries overseen by the Bank of Russia.
Under the proposed timeline, Russian citizens could begin buying and selling digital assets through approved platforms as early as July 2026. However, the “grey zone” currently occupied by many exchanges is facing a terminal countdown. The bill mandates a total ban on all unlicensed crypto platforms, effective July 2027.
This core framework is part of an all-round legislative offensive to standardize the market. Meanwhile, Bill No. 1194929-8, also cleared its first reading on Tuesday. Together, these bills signal Moscow’s intent to replace the current laissez-faire environment with a supervised, state-stamped infrastructure.
Guardrails and Retail Restrictions
The legislation introduces stringent “saleability” criteria for digital assets. To be eligible for retail investment, a cryptocurrency must meet high liquidity thresholds, including: A market capitalization exceeding 5 trillion rubles ($66.6 billion) over two years. Daily trading volumes surpassing 1 trillion rubles ($13.3 billion).A minimum five-year operational history.
For the average Russian investor, the barrier to entry is rising. The bill requires retail participants to pass specialized tests and caps annual purchases through a single intermediary at 300,000 rubles ($4,000).
While the law allows for crypto held in foreign accounts (provided it is reported to tax authorities), it maintains a firm ban on using cryptocurrency for domestic payments within Russia.
Despite the legislative momentum, the path to criminal enforcement remains blocked. The Supreme Court recently declined to support a secondary bill that would have introduced prison terms for unlicensed activity, labeling the move “premature” until the primary regulatory framework is fully enacted.
This regulatory pivot represents a stark “volte-face” for the Kremlin. Despite its historical skepticism of crypto, Moscow has been forced to embrace digital assets as a tool for sanctions evasion. With imports declining 8% in mid-2024 due to payment delays in the SWIFT system, the central bank is now spearheading an “experimental” infrastructure for international trade settlements.
By leveraging blockchain’s security and speed, Russia aims to bypass Western scrutiny, using a global technology to protect its domestic resource-based economy.
