Russia’s State Duma has moved forward with a significant draft law focused on the regulation of digital currencies and a comprehensive overhaul of the framework governing digital financial assets. The bill, which received overwhelming support with 327 out of 340 deputies voting in favor, was submitted by the government on April 1 and is officially titled “On Digital Currency and Digital Rights.” The legislation introduces five categories of regulated organizations, encompassing exchanges, brokers, management companies, depositories, and exchangers.
What are the key features of this proposal? The draft law outlines important requirements regarding investor participation and establishes a structured approach for storing, trading, and exchanging cryptocurrencies. Starting from July 1, 2026, both individuals and businesses will have the legal ability to acquire cryptocurrencies solely through licensed intermediaries. Furthermore, only those cryptocurrencies that meet significant criteria regarding market capitalization, trading volume, and operational history can participate in organized exchanges.
However, the usage of cryptocurrencies for domestic payments remains prohibited, with an exception made for foreign trade settlements. The regulation also proposes the creation of a digital depository, tasked with managing cryptocurrency holdings, thereby restricting withdrawals to licensed foreign institutions and disallowing transfers to personal wallets.
Additionally, Russia’s central bank will possess the authority to set limits on withdrawals. Non-qualified investors are required to undergo testing and could face yearly purchase restrictions, while qualified investors will enjoy more lenient regulations. Importantly, the law seeks to prohibit all crypto lending for residents of Russia without the involvement of licensed intermediaries, regardless of whether transactions occur domestically or across borders.
This ban on unmediated transactions is set to take effect on July 1, 2027. However, peer-to-peer transactions will remain technically permissible until then, with mechanisms for payment-blocking and blacklisting expected to be implemented earlier in 2026. The proposed legislation also reshapes the digital financial assets market structure, enhances transparency requirements for issuers, and allows governmental entities to engage in the market.
What are the next steps for this legislation? In Russia, a draft bill must undergo three readings in the State Duma to become law. The first reading addresses the overarching concept and framework without any amendments. The second reading involves a thorough review and allows for proposed amendments to be considered and voted upon, while the third reading constitutes a final vote on the complete bill. Lawmakers have two weeks to suggest amendments prior to the second reading.
Once the State Duma approves the bill, it will require consent from the Federation Council within 14 days and will need the president's signature within another 14 days. If all goes as planned, the law could be implemented on July 1, 2026.