Russia’s State Duma just passed a major cryptocurrency regulation bill. First reading’s done. This sets up one of the world’s toughest digital asset frameworks.
The legislation’s No. 1194918-8 titled: “On Digital Currency and Digital Rights.” It forces all crypto trading through licensed intermediaries. Retail investors face strict investment caps. The country’s existing ban on crypto payments? That stays.
This is a big escalation. Russia’s trying to drag its massive gray-market crypto industry under direct Bank of Russia control.
Licensed platforms could start offering services in July. Unlicensed exchanges face a complete ban. That kicks in July 2027.
The new rules hit regular traders hard. Purchases through a single intermediary get capped at 300,000 rubles per year. Traders need to pass competence tests before they can access approved platforms.
The Bank of Russia decides which digital currencies are permitted. Only the “most liquid” ones make the cut. They’ll use strict thresholds: market cap, trading volume, history.
Russians can still buy crypto abroad. But there’s a catch. They must report all transactions to tax authorities.
The 2021 ban on using crypto for payments stays intact. Digital assets remain investments. They can’t function as currency inside Russia.
The regulatory package goes beyond trading rules. Parallel bills introduce administrative and criminal liability for unlicensed services. Mandatory registration with the central bank. Fines and prison terms for violations.
The Supreme Court’s pushing back though. It called one criminal enforcement bill premature. The court’s argument: criminal penalties can’t reference a regulatory regime that doesn’t exist yet. You can’t enforce rules that aren’t formally adopted and detailed.
The court called the proposal a “blanket provision.” It depends on rules that don’t formally exist.
The bill follows years of piecemeal regulation. Russia wants to transform its crypto market into a heavily supervised, bank-centric model.
Supporters say the framework will curb money laundering. It’ll strengthen investor protection.
Critics aren’t buying it. Local industry figures warn that strict licensing requirements will backfire. Investment caps and exchange bans might push trading further underground. That’d weaken the transparency and oversight lawmakers want to achieve.
The legislation still needs additional readings before final adoption.
