TL;DR:
- Russia approved in first reading a bill that classifies cryptocurrencies as legal property under Russian law.
- The Bank of Russia will oversee the crypto market, granting licenses to exchanges and brokers operating in the country.
- The new regulation allows the use of cryptocurrencies in cross-border payments, but prohibits their circulation in domestic transactions.
Russia approved the first reading of the bill titled “On Digital Currency and Digital Rights”, which formally recognizes cryptocurrencies as property under law. Bitcoin and Ethereum are among the first assets that would receive official recognition. The initiative garnered broad political support and lays the groundwork for a structured regulatory framework in the country.
Under the proposed rules, cryptocurrencies may be used in cross-border payments and foreign trade, but will remain prohibited for everyday transactions within the national territory. This means they cannot be used to purchase goods, pay for services, or cover salaries inside the country.
The ruble will remain the sole legal tender for domestic operations. The regulation also legalizes cryptocurrency mining, though under specific conditions: miners will be required to register their equipment and operate within Russian infrastructure, allowing the government to track and supervise the sector’s activity more effectively.
The Bank of Russia Takes Control of the Crypto Market
The bill grants the Bank of Russia full authority over cryptocurrency operations. The body will be responsible for licensing exchanges and brokers, setting operating standards, and overseeing all activity related to the sector. Additionally, the law establishes a distinction between two categories of investors: qualified investors, with broader operating limits, and non-qualified investors, whose annual transactions would be capped within a range of between $3,900 and $4,000. This segmentation aims to protect less experienced users from market volatility.
If the bill advances without substantial changes, the law would take effect on July 1, 2026, with some provisions subject to a delayed implementation timeline to allow the system to adapt. With more than 20 million crypto users, Russia opts for controlled regulation. Though the chosen model prioritizes the strategic use of digital assets over individual financial freedom.
