Russia Advances Crypto Regulation Bill to Legalize Foreign Trade Settlements

TLDR

• Russia’s State Duma advanced crypto bill 1194918-8 in its first reading.
• The bill recognizes cryptocurrency as property under Russian law.
• Crypto may be used for foreign trade but not domestic payments.
• Exchanges and brokers would be licensed by the Bank of Russia.
• Unlicensed crypto platforms face a ban starting in July 2027.

Russia’s State Duma has advanced a broad cryptocurrency regulation bill in its first reading, moving the country closer to a formal legal framework for digital currency trading, mining and cross-border settlements.

The bill, listed as 1194918-8 and titled “On Digital Currency and Digital Rights,” is expected to take effect on July 1, 2026. It would recognize cryptocurrency as property and allow its use in foreign trade and cross-border settlements, while maintaining a ban on crypto payments inside Russia.

The legislation marks a shift from Russia’s earlier partial rules, which separately recognized crypto as property, legalized mining and allowed limited central bank experiments. The new framework would bring exchanges, brokers, mining pools, digital accounts and crypto custody under formal state supervision.

Under the proposal, individuals and companies would be allowed to buy crypto legally through licensed intermediaries. These intermediaries would include registered exchanges, brokers, exchangers and trustees supervised by the Bank of Russia.

Licensed Crypto Trading Under Central Bank Oversight

The bill gives the Bank of Russia a central role in licensing and supervising crypto market participants. Crypto exchanges and brokers would need approval to operate, and unlicensed platforms would face a ban beginning in July 2027.

The framework also creates a digital depository system for storing and recording crypto assets. This system would function in a manner similar to securities accounts, giving authorities clearer oversight of holdings and transactions.

Public trading would be limited to large cryptocurrencies that meet market capitalization requirements. According to the proposal, eligible assets would need an average market value above about 5 trillion rubles, or roughly $55 billion to $60 billion.

Non-qualified investors would face tighter restrictions. They would need to pass a test, accept risk disclosures and remain within annual purchase limits. The proposed cap for sanctioned crypto purchases is 300,000 rubles, or about $3,900 to $4,000. Qualified investors would not face the same limits.

Foreign Trade Becomes Main Use Case

The bill allows companies and entrepreneurs to use cryptocurrency for international trade settlements. This has become one of the main policy goals of the legislation, as Russian businesses continue to seek payment routes during sanctions and restrictions on traditional banking channels.

Businesses would be able to buy crypto domestically for foreign trade purposes without relying on special experimental regimes. Crypto payments inside Russia would remain prohibited, keeping digital assets outside the domestic payments system.

The proposal also brings anti-money laundering rules into the sector. Licensed platforms would be required to monitor transactions, screen for criminal links and follow standards similar to the FATF travel rule.

Authorities would also be able to blacklist certain cryptocurrencies, including assets designed mainly for anonymity. This gives regulators room to restrict coins that they view as difficult to trace.

Withdrawals would be limited to licensed foreign platforms, rather than private wallets. Authorities may also impose limits or block outward transfers if required under the framework.

Mining, P2P Trading and Taxes Face New Rules

Crypto mining would remain legal for registered businesses and certain individuals operating within energy limits. People with serious criminal records would be excluded from mining activity. Peer-to-peer crypto trading would face tighter controls. From 2026, suspicious payments could be blocked. From 2027, P2P trading using Russian bank cards would become illegal.

Crypto businesses would need to register if monthly turnover exceeds about 3.5 million rubles, or around $38,000. Illegal activity above that level could result in criminal liability. Penalties under the bill include prison sentences of up to seven years. Companies could face fines of about $11,000, while officials may face fines ranging from $2,200 to $3,300.

The property classification would also affect legal disputes. Crypto assets could receive protection in bankruptcy, divorce, theft and fraud cases, provided that holdings are disclosed for tax purposes.

Taxation would apply to income from crypto sales and mining. Tax would be calculated on the difference between income and purchase expenses, while losses would not be carried forward. Crypto transactions would be exempt from VAT, but reporting would become mandatory.

The bill now moves through further legislative review before final adoption. If approved, it would establish Russia’s first comprehensive state-supervised crypto marketplace, with foreign trade as the main permitted use and domestic payments still restricted.