Russia is just two votes away in the State Duma this Tuesday from passing its first comprehensive crypto trading framework. The bill, titled “On Digital Currency and Digital Rights,” sets a 5 trillion ruble (approximately $65 billion) market capitalization threshold for assets seeking legal listing. The legislation also requires a consecutive five-year track record on licensed foreign exchanges.
With such a high bar, currently only Bitcoin and Ethereum pass the filter. Other assets like Solana (SOL) and TON may only qualify later if they meet the criteria. Financial Committee Chairman Anatoly Aksakov expects the final approval process in the Senate and President Vladimir Putin’s signature to take two weeks. The regulations are scheduled to take effect on September 1, 2026, pushed back from an initial July 1 target due to tough coordination among government agencies.
A Weapon to Bypass Western Sanctions
The new rules establish one strict boundary: crypto can only be used for international trade settlements. Russian companies can pay foreign partners using Bitcoin to circumvent Western sanctions, but the ruble remains the sole legal tender domestically. The Bank of Russia holds full control over issuing operational licenses for crypto exchanges, brokers, and custodians.
Strict limits also apply to retail users. Everyday investors are only permitted to purchase up to 300,000 rubles (roughly $3,800) in crypto annually through a single licensed intermediary. Professional investors are exempt from purchase limits, but they are strictly barred from holding privacy coins such as Monero (XMR), Zcash (ZEC), and Dash. The government is blocking access to these assets because anti-money laundering systems cannot trace them.
Local Banks Get a Head Start
These trade and settlement regulations arrive to complement the crypto mining legislation signed by Putin in August 2024. That mining policy has yielded tangible results: Russia now ranks as the world’s second-largest Bitcoin producer after the United States.
The European Union has blocked all crypto transaction routes with Russian entities since February. Yet, this blockade has not stalled the legislative engine in Moscow. Local banks have moved even faster than lawmakers, with VTB and T-Bank announcing plans to build crypto custody facilities well before the bill’s formal passage.
This maneuver by major banks shifts the crypto landscape in Russia. While strict rules with limited quotas clearly constrain small retail investors, large institutional players now have a formal legal framework for multi-billion-dollar transaction pathways. Reported via Decrypt.
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
