Russia’s lower house of parliament passed a bill in its first reading on Tuesday that would create the country’s core legal framework for digital currency, moving Moscow closer to a system that channels crypto trading through licensed intermediaries under Bank of Russia oversight.
The draft bill No. 1194918-8, titled “On Digital Currency and Digital Rights,” passed alongside a companion bill, No. 1194929-8, in the State Duma on Tuesday.
Key provisions for retail investors
Under the bill, Russians could buy and sell crypto through approved intermediaries as early as July, while unlicensed crypto platforms would be banned starting July 2027.
Retail investors would only be permitted to purchase the “most liquid digital currencies” as defined by the Bank of Russia — assets must carry an average market cap above 5 trillion rubles ($66.6 billion) over two years, average daily trading volume above 1 trillion rubles ($13.3 billion), and a trading history of at least five years.
Retail buyers would also need to pass a test and would be capped at 300,000 rubles ($4,000) per year through a single intermediary.
The bill allows residents to buy crypto abroad through foreign accounts, provided those transactions are reported to tax authorities, and maintains a strict prohibition on crypto payments that has been in place since 2021.
Supreme Court pushes back on criminal penalties
Lawmakers separately introduced two bills establishing liability and criminal penalties for violations of the new rules, including bills No. 1194944-8 and No. 1209607-8.
The Supreme Court declined to support the criminal penalties bill in its current form, arguing it depends on a broader digital currency framework that has not yet been adopted.
The court stated:
“The proposed article is drafted as a blanket provision, the application of which is not possible in isolation from rules directly established by regulatory acts. Meanwhile, the draft federal law ‘On Digital Currency and Digital Rights,’ aimed at regulating issues related to the organization of digital currency circulation, is currently under development. Until the relevant federal law is adopted, the initiative in question appears premature.”
Industry warns of unintended consequences
Several local industry participants have repeatedly warned that the proposed legislation could backfire, pushing the sector further underground rather than bringing it out of the grey zone.
Tuesday’s first-reading vote is significant because it advances the base law that all other enforcement measures still depend on — meaning the criminal penalties framework cannot move forward until this foundation is formally adopted.
