Russia Nears Final Crypto Vote With Retail Caps, Licensed Exchanges and Bitcoin Trade
Russia’s State Duma is scheduled to vote on July 21 on a comprehensive cryptocurrency bill that would legalize regulated trading and cross-border settlements while preserving the country’s ban on using digital assets for domestic payments. The bill, known as draft law No. 1194918-8, is set for its second and third readings after the Financial Market Committee recommended advancement on July 16.
The bill cleared its first reading on April 21 with 327 of 340 participating deputies voting in favor. If passed on Tuesday, the legislation will move to the Federation Council and then to President Vladimir Putin for signature.
The proposal recognizes digital currency as property and permits licensed operators—including exchanges, brokers, and custodians—to support crypto transactions under Bank of Russia supervision. However, crypto remains prohibited as payment for goods and services inside Russia. Foreign-trade participants will be allowed to use digital assets in cross-border settlements, expanding access beyond the current experimental regime available to selected companies.
This distinction is central to Moscow’s strategy: the government seeks alternative settlement channels as Western sanctions restrict access to correspondent banks and conventional payment networks, but it is not prepared to weaken the ruble’s role in domestic commerce.
The Bank of Russia is expected to set annual purchase limits for non-qualified investors and require risk testing. A proposed ceiling of 300,000 rubles (roughly $3,800) would sharply restrict ordinary investors, while qualified participants receive broader access. The final framework dropped an earlier demand that holders disclose individual wallet addresses; reporting will instead focus on balances and transaction flows. Implementing rules may still determine how private wallets interact with licensed Russian infrastructure.
Mining will remain under Federal Tax Service oversight rather than the Bank of Russia, while regulated financial firms could gain new opportunities in custody, brokerage, and foreign-trade settlement services.
For bitcoin, the immediate implication is institutional rather than retail. Legal cross-border use could increase demand from exporters, importers, and settlement providers, while licensing may concentrate liquidity among state-approved banks and trading platforms. Russia’s Finance Ministry estimates that roughly 20 million residents hold crypto. The bill would move a large portion of that activity toward supervised channels, but retail caps and custody restrictions could keep speculative demand constrained.
International scrutiny also remains a risk. Companies handling Russian crypto settlements could face additional compliance reviews or sanctions exposure, particularly when transactions involve restricted entities or counterparties.
Anatoly Aksakov, chairman of the Duma’s Financial Market Committee, said the legislation is expected to take effect on September 1. Additional Bank of Russia rules may be required before fully regulated trading begins, leaving implementation and enforcement as the next major tests.