Russia’s State Duma approves crypto market bill opening regulated retail access

Russia’s State Duma has passed, in its second and third readings, a sweeping law on digital currencies and digital rights that formalizes citizens’ right to hold, buy and sell cryptocurrency through licensed intermediaries, fully opens cross-border trade settlements in digital currency and introduces criminal liability for illegal circulation. Core provisions take effect on September 1, 2026, with a transition to a fully licensed regime running through July 1, 2027. The law keeps Russia’s long-standing ban on using cryptocurrency as a means of payment inside the country, even as it creates a regulated structure for brokers, exchanges, crypto exchange operators and digital depositories. Retail access will be split between qualified and non-qualified investors, with both groups subject to testing. Non-qualified investors will be limited to the most liquid cryptocurrencies and to a cap that the Bank of Russia will set later in subordinate regulation, while qualified investors will have access to any cryptocurrency without a transaction-size limit. A major practical change is the removal of restrictions on using cryptocurrency in foreign trade settlements. Exporters and importers will be able to use digital currency for cross-border payments without restrictions, directly or through intermediaries. Residents will also be able to conduct crypto operations abroad using foreign bank accounts, while crypto tracked abroad must be reported to tax authorities. The legislation also formalizes mining through defined terminology, a mining registry and registration requirements for industrial-scale activity, while giving regions with power shortages authority to restrict household mining. Penalties apply for mining without registration when mining income exceeds 3 million rubles, and cases involving damages over 13 million rubles can carry prison terms of up to five years. P2P transactions are not banned outright, but from July 1, 2027, buying crypto for rubles through a Russian bank must go through a licensed intermediary. A resident is treated as an exchange operator after carrying out two or more transactions a month totaling more than 3.5 million rubles. Illegal digital currency circulation is punishable under Article 171.7 of Russia’s Criminal Code, reinforcing a broader shift from a gray market toward a controlled, licensed framework.