The Russian government has passed comprehensive legislation regulating cryptocurrency trading. Titled “On Digital Currency and Digital Rights,” the law covers a broad range of activities, from the custody of assets such as Bitcoin to cross-border transactions.
The legislation introduces clear rules for exchanges, brokers, custodians and other intermediaries. Oversight of the market will fall under a single authority: the Central Bank of Russia. This significantly expands the bank’s role in the cryptocurrency market, where it had previously acted largely as an observer.
The bill is now reportedly awaiting President Vladimir Putin’s signature, which is expected soon. Once signed into law, it will become official and a transition period will begin on the designated effective date.
From an unregulated market to a licensed system
The law will create a formal route for licensed crypto businesses. Until now, much of Russia’s cryptocurrency market has operated outside regulatory oversight. Under the new system, companies providing exchange, brokerage and custody services will need to register and follow official rules.
This reflects Russia’s often contradictory approach to cryptocurrencies. Crypto mining has been permitted under certain conditions for some time, while the use of digital assets as a means of payment remains prohibited. The new law does not fully resolve this contradiction, but it clarifies the legal framework for trading and custody services.
The figures highlight the size of the market. According to Russia’s Ministry of Finance, daily cryptocurrency trading volume in the country has reached $640 million. Much of this activity still takes place outside official channels, which is precisely what the new legislation aims to change.
The scale of unregulated trading has long concerned Moscow due to lost tax revenue and challenges related to capital controls. Cross-border cryptocurrency transactions have become especially sensitive as Western sanctions against Russia have tightened.
Retail investor limit, no legal payment status
The law also introduces a cap for retail investors. Investors who do not qualify as professionals will be allowed to purchase up to 300,000 rubles, or approximately $3,820, worth of cryptocurrency per year.
Higher limits will apply to qualified investors under separate regulations. This distinction is consistent with Russia’s existing investor classification system in traditional capital markets and appears intended to provide some protection for smaller investors against the volatility of cryptocurrencies.
There is also something the law does not do: it does not recognize Bitcoin or any other cryptocurrency as an official means of payment in Russia. Trading and custody will now operate within a legal framework, but using cryptocurrency for everyday purchases remains prohibited.
This approach is similar to the policies adopted by many other countries. Authorities recognize cryptocurrencies as investment assets while preserving the exclusive status of the national currency as legal tender.
Russia’s move comes as the US Congress continues to debate the CLARITY Act. The two regulatory processes are advancing at different speeds and under different political conditions, but they share a common direction: bringing cryptocurrency markets onto a more institutional and closely supervised footing.
While the US process continues through congressional committees, Moscow appears to be one step ahead. After Putin signs the legislation, attention will turn to how the rules are implemented, particularly in relation to cross-border transactions and entities affected by international sanctions.
