Russia’s State Duma will hold its second and third readings on the country’s first comprehensive cryptocurrency bill on July 21. If passed, the legislation is set to take effect on September 1, marking a significant moment in Russia’s approach to digital currencies.
Key provisions and requirements
The bill, titled “On Digital Currency and Digital Rights,” establishes a clear legal framework for using cryptocurrencies in Russia. Its primary feature is to permit the use of crypto assets for international trade, providing Russian companies with a sanctioned mechanism to make payments abroad and bypass Western banking restrictions. However, the legislation maintains a strict ban on domestic cryptocurrency payments—Russian businesses and individuals cannot use crypto as payment within the country.
Before becoming law, the bill requires approval from the Federation Council, Russia’s upper legislative chamber, and a signature from President Vladimir Putin. Anatoly Aksakov, chairman of the State Duma Committee on Financial Markets, estimated that these final formalities would take around two weeks following the Duma votes.
Earlier, legislators had aimed for the law to take effect on July 1, but delays in coordination among government agencies postponed the timeline. The Russian financial news outlet Kommersant reported these setbacks between ministries and regulatory bodies.
The new framework introduces a licensing regime for cryptocurrency exchanges, brokers, and custodians—companies entrusted with storing digital assets for clients. The Bank of Russia will oversee the issuance of these licenses and maintain broad discretionary power to prohibit specific cryptocurrencies it identifies as threats to financial stability.
Major financial institutions have shown anticipation of the law’s enactment. VTB and T-Bank, two of Russia’s leading banks, have revealed plans to establish cryptocurrency depositories to service expected demand.
To qualify for legal trading under the new regime, a cryptocurrency must have a market capitalization above 5 trillion rubles, or around $65 billion, and demonstrate at least five years of verified trading history on a licensed foreign exchange. This limits approved assets to only a handful of major cryptocurrencies, specifically Bitcoin and Ethereum at present standards.
| Requirement | Allowed Coins | Notable Excluded Coins |
|---|---|---|
| Market cap over 5 trillion rubles (~$65 billion) | Bitcoin, Ethereum | Most altcoins |
| 5+ years trading history on licensed foreign exchange | Bitcoin, Ethereum | Newer cryptocurrencies |
Mini dictionary: VTB, also known as Vneshtorgbank, is one of Russia’s largest state-owned banks, active in commercial and investment banking. T-Bank is a smaller Russian financial institution focused on retail and digital banking services.
Alexandra Fedotova, a lawyer at law firm White Stone, indicated that the Bank of Russia is expected to publish an official list of approved digital coins, potentially expanding beyond Bitcoin and Ethereum to include popular assets such as Solana or Toncoin, though only for qualified investors. Strict anti-money laundering measures will remain in place, excluding privacy coins and assets that cannot meet transaction traceability standards.
To be legally traded, cryptocurrencies must have a market cap above 5 trillion rubles and at least five years of recognized trading history, effectively limiting the field to Bitcoin and Ethereum in Russia, with other coins reserved for qualified investors.
Domestic bans and international trade channels
The legislative changes do not allow residents or companies to use cryptocurrencies for paying for goods or services within Russia. The new law makes a clear distinction between “buying crypto” and “using crypto” for domestic transactions. The ruble will remain the exclusive legal tender in all domestic activities.
Instead, Russian firms will be permitted to use approved cryptocurrencies, such as $BTC and $ETH, in international trade, especially as a means to navigate ongoing sanctions levied by Western governments. Since 2014, Russia has faced increasing economic restrictions, with the European Union recently banning all crypto transactions involving Russian entities. The new legislation responds to these conditions by enabling alternative cross-border payment solutions.
Legislators structured this bill to help Russian companies settle with foreign partners and circumvent the limitations imposed by international sanctions, while preserving the ruble as the sole legal currency inside Russia.
Meanwhile, unlicensed cryptocurrency platforms will remain operational until July 1, 2027, when they face an outright ban under the law’s transition provisions.
Next steps and regulatory outlook
Putin signed earlier legislation establishing a regulatory framework for cryptocurrency mining in August 2024. That law made Russia the second largest Bitcoin producer globally, trailing only the United States, according to the Hashrate Index for 2026. The new bill complements these provisions, rounding out the country’s crypto regulation by introducing trading and settlement requirements.
Observers expect that, pending swift Senate and presidential approval, Russia’s full legislative package for cryptocurrency will officially take effect on September 1. The authorities hope these changes will strengthen Russia’s global trade options without introducing cryptocurrencies into domestic payment systems.
