Russia's State Duma has approved one of the country's most significant cryptocurrency laws, establishing a legal framework for crypto trading, investing, mining, issuance, and custody. The legislation, titled "On Digital Currency and Digital Rights" passed its second and third readings after months of discussion and now awaits approval from the Federation Council and the signature of President Vladimir Putin.
The nearly 300-page bill marks Moscow's most comprehensive effort to regulate the cryptocurrency market and formalize digital asset activity within the country. It also updates existing legislation governing Digital Financial Assets (DFAs), including tokenized securities and other blockchain-based financial instruments.
For the first time, the law provides Russian citizens with legal access to cryptocurrencies under a regulated market structure, while defining the responsibilities of exchanges, brokers, custodians, and other market participants.
Licensed Exchanges Will Control Crypto Trading
Under the new framework, cryptocurrency trading will only be permitted through licensed Russian exchanges. The law introduces a regulated market structure in which approved exchanges, brokers, management companies, and digital depositories will oversee crypto transactions and custody services.
Digital depositories will be responsible for safekeeping digital assets and maintaining ownership records, while brokers will serve as intermediaries between investors, domestic exchanges, and approved foreign trading platforms.
The legislation also establishes minimum operational requirements for market participants. For example, licensed exchanges must maintain at least 15 million rubles in capital, while clearing organizations will be allowed to operate independently under certain conditions.
Crypto Investments Allowed, Payments Remain Prohibited
Although the law legalizes cryptocurrency as an investment asset, it continues to prohibit its use for everyday payments. The Russian ruble, including its future digital ruble, will remain the country's only legal means of payment for goods and services.
Initially, only large-cap cryptocurrencies are expected to qualify for trading under the new rules. Based on previous government guidance, assets such as Bitcoin (BTC), Ether (ETH), and Tether (USDT) are expected to meet the initial eligibility requirements.
Ordinary investors will be required to complete knowledge assessments before purchasing cryptocurrencies and will only be permitted to invest in the most liquid digital assets. In addition, the Bank of Russia will introduce investment limits for non-qualified investors, while experienced or qualified investors will be able to access a broader range of cryptocurrencies without similar restrictions.
The legislation also requires Russian residents to use custodial wallets when holding digital assets inside the country. Self-custodied wallets will generally remain unavailable to domestic users, although Russians operating through foreign jurisdictions may still access non-custodial wallets outside Russia.
Implementation Begins in September
Most provisions of the new cryptocurrency law are scheduled to take effect on September 1, 2026, while certain measures-including additional restrictions on digital asset transfers—will be phased in during the second half of 2027.
The legislation includes a transitional period running until March 1, 2027, giving existing digital asset platforms time to obtain the required licenses and regulatory approvals before the full framework becomes operational.
The Central Bank of Russia will now be responsible for drafting more than 30 supplementary regulations needed to implement the new law. According to Deputy Governor Vladimir Chistyukhin, these documents are expected to be completed by November.
Although cryptocurrency payments remain prohibited domestically, the legislation includes limited exceptions for foreign trade, allowing certain businesses to use digital assets in international transactions, particularly in situations involving economic sanctions.
With the passage of the bill, Russia has taken its largest step toward establishing a fully regulated cryptocurrency market, balancing greater legal certainty for investors with continued government control over how digital assets are used within the country's financial system.
