Russia's State Duma has approved the country's first comprehensive cryptocurrency law on July 21, 2025, creating a legal framework for exchanges, depositories and other digital asset providers starting September 1, 2026. According to TASS, the legislation establishes rules for companies operating in Russia's digital asset market, with the framework covering exchanges, brokers, custodians and other intermediaries while placing the Bank of Russia at the center of market supervision. Only organizations included in a special registry will be permitted to operate as cryptocurrency exchanges, although firms will be allowed to continue operating without registration until July 1, 2027. The law's passage represents a significant shift from the previous prohibition-plus-gray-market system, converting informal crypto evasion channels into state-sanctioned financial infrastructure. Banks will be required to refuse transfers if they suspect an unauthorized entity is operating a cryptocurrency exchange, while the legislation guarantees judicial protection for holders of digital currencies regardless of whether the assets were previously declared. The bill still requires approval from the Federation Council and President Vladimir Putin before becoming law.
Under the new framework, retail investors will be allowed to buy the most liquid cryptocurrencies through licensed intermediaries, subject to an annual limit equivalent to approximately ₹3,00,000 ($3,800) per intermediary. As reported by TASS, qualified investors will be able to purchase any crypto without restrictions, with the limits forming part of Russia's wider effort to move crypto activity into a regulated market. The legislation maintains a ban on using crypto for payments of goods and services within the country, with banks and others banned from advertising and promoting crypto payments. However, it preserves several exceptions, including allowing digital currencies to be used for settlements under foreign trade contracts between Russian residents and non-residents, transactions involving mined cryptocurrency, payments required by digital asset platforms and settlements involving securities or other digital assets. Individuals and companies must pass a test to qualify as retail investors and may purchase only the most liquid assets selected under Bank of Russia criteria, with current criteria likely admitting Bitcoin, Ethereum, and USDT.
The approved legislation establishes comprehensive rules for companies using digital assets in international trade, with Russian companies able to use approved digital assets for certain cross-border transactions under the regulated system. According to TASS, the law allows digital currencies to be used for settlements under foreign trade contracts between Russian residents and non-residents, transactions involving mined cryptocurrency, payments required by digital asset platforms and settlements involving securities or other digital assets. Russia has already been expanding its use of digital assets for international settlements, introducing an experimental legal regime that allows some companies to use cryptocurrency in foreign trade. The cross-border provisions come as Western governments increase scrutiny of Russia-linked digital asset flows, with the European Commission having proposed wider restrictions on overseas crypto platforms accused of helping sanctioned Russian entities move funds. The EU's most significant sanctions package against Russia in April specifically targets crypto, including a complete ban on providers and platforms established in that country, with the EU stating that 'Russia is becoming increasingly reliant on cryptocurrencies for international transactions'.
Major Russian financial institutions have already started preparing products for the new market structure, with Sberbank planning to introduce a crypto wallet and digital asset custody services after the regulatory framework takes effect. As reported by TASS, the state-backed lender is also considering giving clients access to foreign cryptocurrency exchanges, depending on the final rules. VTB and T-Bank have announced plans for digital asset custody infrastructure, while Moscow Exchange has shown interest in starting regulated crypto services. Alfa-Bank has been testing crypto trading with a limited group of eligible investors and plans to develop its own digital asset depository, with its wider rollout depending on licensing requirements and the final regulatory timetable. Russia's Finance Ministry previously estimated that domestic cryptocurrency trading reaches around ₹50,000 crore per day, much of it currently outside regulated channels. The banking sector's preparation includes making licensed platforms tax agents, collecting income tax on crypto gains directly, which folds the entire investment channel into the state's fiscal machinery from day one.
Industry critics have raised serious concerns about the legislation's impact on Russia's crypto market. GMT Legal founder Andrey Tugarin warned that users will no longer be able to fund overseas platforms directly through Russian banks after July 1, 2027, when Russian banks must block direct payments to unlicensed foreign exchanges. Exved founder Sergey Mendeleev argued that the framework favours selected banks, exchanges and foreign-trade participants while restricting ordinary users and existing crypto businesses, stating "This is not regulation. It is a ban. Like casinos or forex." The legislation creates a completely new legal form called "crypto exchangers" requiring at least ₹1,50,00,000 ($15 million) in capital, with registered exchangers needing to install anti-fraud systems, separate client assets from company funds and meet strict compliance, staffing and cybersecurity rules. Some crypto transfers will also face a 48-hour anti-fraud cooling period, with thresholds of ₹2,50,000 ($300,000) for transfers inside Russian infrastructure and ₹1,25,000 ($100,000) when assets move into international infrastructure. The bill's survival will depend on whether users and businesses accept these strict limits or continue operating outside the regulated system.
