Russia has enacted its first comprehensive law governing digital currencies, establishing a regulated framework for the trading and custody of digital assets while maintaining a ban on their use for payments. The legislation, signed by President Vladimir Putin, sets the stage for a controlled digital asset market, with most provisions scheduled to take effect on September 1.
The new law permits the issuance, storage, accounting, and trading of digital currencies. It also formalizes cryptocurrency mining, a sector previously legalized in 2024, and creates a framework for exchanges and related services. However, the use of cryptocurrencies as payment for goods and services remains prohibited, along with related advertising. The Russian Government’s aim is to establish a regulated on-ramp for digital assets, rather than a parallel currency, state news agency Tass reported.
Under the new regulations, only government-registered organizations can operate cryptocurrency exchanges. These entities must meet specific capital requirements, including at least 15 million rubles of their own capital, and be affiliated with a self-regulatory body. Retail investors face annual purchase limits and must pass a knowledge test, with non-accredited investors capped at 300,000 rubles per year per intermediary. Qualified investors also need to pass a knowledge test but are not subject to purchase limits.
The law may provide court protection for crypto owners and allows for settlements under foreign trade contracts involving mined coins and payments within digital asset platforms. Decrypt tracked the bill, noting that Western regulators may be observing the carve-out for settlements under foreign trade contracts.
Most of the law’s provisions will come into effect on September 1. Existing operators in the digital asset space have a grace period to register by July 1, 2027. This framework aligns with the push for a digital ruble, with the central bank governor indicating that banks must support the digital ruble by the same September 1 date.
Uncertainties persist regarding the specific list of ‘most liquid cryptocurrencies’ available to non-accredited investors, and the exact scope of ‘court protection for crypto owners’ may require further clarification. The state has established a central bank-supervised pipeline for monitoring digital assets, signaling an intent to control and monitor digital asset flows while facilitating regulated trading and specific cross-border transactions.
Why This Matters
The materials describe a narrow update: President Putin signed a law that establishes rules for the issuance, storage, accounting, and trading of digital currencies. The specific list of ‘most liquid cryptocurrencies’ available to non-accredited investors has not yet been disclosed.
Broader Context
Source materials place the factual news in this context: Russia already legalized cryptocurrency mining in 2024, when Putin signed a separate bill green-lighting the industry, so this law fills the gap on trading and custody that the mining rules left open.
Leave a Reply