The Russian State Duma recently passed the first reading of the "On Digital Currency and Digital Rights" bill, marking a crucial step towards the legalization of cryptocurrencies in the country. According to the bill, the Russian Central Bank will become the core regulatory authority, fully responsible for issuing operational licenses, approving or prohibiting cryptocurrency trading activities, and determining the legality of transactions. Cryptocurrencies are legally defined as property, but their use as a means of payment for goods or services within the country is explicitly prohibited, with the ruble (including the digital ruble) maintaining its status as the sole legal tender.
The bill sets a clear implementation timeline, requiring final passage by July 1, 2026. By then, ordinary Russian citizens will be able to legally purchase digital assets through licensed intermediaries. Investors are categorized into qualified and non-qualified groups, with non-qualified investors required to pass relevant knowledge tests and face annual purchase limits. The central bank has proposed a limit of 300,000 rubles (approximately $4,000).
Regarding tradable assets, the bill sets strict thresholds, allowing only cryptocurrencies with a market capitalization exceeding 5 trillion rubles, a daily trading volume exceeding 1 trillion rubles, and a trading history of at least five years to be traded. This means mainstream assets such as Bitcoin and Ethereum may meet the criteria. Additionally, the bill introduces criminal liability provisions for illegal cryptocurrency operations, with penalties of up to 1 million rubles (approximately $13,000) in fines or imprisonment for up to seven years. In specific circumstances, enterprises may use cryptocurrencies for foreign trade settlements.