Russia’s State Duma Advances Crypto Framework Bill

• Russia’s State Duma passed the crypto bill with 327 votes in favor, targeting operation by July.
• Crypto is legal to own and trade, but strictly banned for domestic payments, wages, or purchases.
• Sanctioned Russian firms can settle cross-border deals in crypto, seen as a sanctions workaround.

Russia is finally bringing cryptocurrency out of the grey zone, and the rules are stricter than many expected. The State Duma, Russia’s lower house of parliament, passed the first reading of a landmark crypto bill this week with 327 votes in favor. If fully adopted, the law would launch a regulated digital asset market by July 1, 2026, one that legalizes crypto ownership while keeping tight control over how it can be used.

What The Law Does

The bill draws a clear line between what is and is not permitted:

• Digital currency is recognized as legal property, enforceable in court
• Domestic use of crypto for payments, wages, and goods is strictly prohibited
• Cross-border settlements in crypto permitted for sanctioned Russian companies
• Bank of Russia to license and supervise all market participants
• Mining is legalized but restricted to the Russian infrastructure only
• Criminal penalties of up to seven years for illegal crypto operations

Russians will be able to buy, hold, and trade digital assets through licensed intermediaries, including exchanges, brokers, banks, and depositories, all operating under Bank of Russia licenses. The ruble remains the only legal tender for domestic use.

Where crypto does get a green light is in foreign trade. Russian companies will be allowed to settle cross-border transactions in cryptocurrency, covering payments for goods, services, intellectual property, and remittances. 

Not Everyone Gets Equal Access

The framework splits investors into two tiers. Qualified investors face fewer restrictions, while non-qualified investors must pass a competency test and will be capped at an annual purchase limit of 300,000 rubles, roughly under $4,000.

Kaplan Panesh, Deputy Chairman of the State Duma Committee on Budget and Taxes (LDPR faction) said, “No anonymous exchangers or ‘black’ brokers. Exchanges, brokers, and depositories receive licenses, and the Central Bank monitors compliance. Trading through underground platforms is automatically at risk of blocking and loss of funds.”

The Criticism

Not everyone is sold. Two parliamentary committees flagged concerns, warning that overly tight rules could push users deeper into the grey market rather than bringing them into the regulated system. Russian banks lobbied for softer rules and a broader list of approved coins.

Penalties for operating outside the framework are steep, with fines up to 1 million rubles and prison sentences of up to seven years.

Related: Russia Bans Bitcoin Mining in Two More Regions Until 2031