Russia Moves Toward Full Crypto Regulation With New Central Bank-Led Bill

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Russia’s State Duma passed a comprehensive cryptocurrency regulation bill in its first reading on April 22, 2026, channeling all domestic crypto trading through licensed intermediaries under Bank of Russia oversight and formally classifying digital currencies as property under Russian law. The bill prohibits cryptocurrency from being used for domestic payments while explicitly permitting it for cross-border trade settlements.

Bill Recognizes Crypto as Property, Sets Tax and Investor Rules

The legislation, titled “On Digital Currency and Digital Rights”, codifies definitions for digital currencies, utility tokens, and security tokens, and establishes five categories of regulated market participants: exchanges, brokers, management companies, depositories, and exchangers.

The property classification carries concrete legal consequences. Crypto holdings will be recognized in civil disputes, including bankruptcy proceedings and divorce settlements, protections that did not previously exist under Russian law. The bill draws a sharp distinction between qualified and non-qualified investors. Non-qualified retail investors face a 300,000 ruble (approximately $3,800) annual purchase cap through any single intermediary. 

Qualified investors face no volume restrictions. Only cryptocurrencies with market capitalizations above 5 trillion rubles ($66.6 billion) and a five-year trading history will be eligible to trade on licensed platforms. Capital gains from cryptocurrency trading will be taxable under the framework.

Central Bank Takes Control After Years of Internal Disagreement

The bill’s passage ends years of conflict between Russia’s central bank and finance ministry. The Bank of Russia had previously pushed for an outright ban on cryptocurrency operations; the finance ministry had advocated for regulated integration. The legislation reflects the central bank’s position: a permissible but tightly controlled market in which it serves as sole regulator.

The Bank of Russia will issue licenses to exchanges, brokers, and custody providers, and will retain authority to approve or block specific transactions. It will also set technical requirements for licensed entities, including cybersecurity standards and capital adequacy requirements.

Domestic Payments Banned; Cross-Border Use Permitted

Despite legalizing crypto as property, the bill maintains the ruble as Russia’s only legal means of domestic payment. Cryptocurrency cannot be used to pay for goods, services, or salaries inside Russia. The legislation carves out an explicit exception for foreign trade: Russian businesses may use digital assets to settle cross-border transactions, a provision officials have described as a mechanism for keeping exports and imports flowing under Western sanctions.

Licensed exchanges operating in Russia will be required to implement know-your-customer procedures and report suspicious activity to financial monitoring authorities. Platforms operating without Bank of Russia registration face potential license revocation.

Alongside the main bill, lawmakers have introduced companion legislation that would impose criminal penalties for unlicensed crypto services. Under that separate draft, individuals operating without authorization could face fines of up to 1 million rubles and up to four years in prison, with sentences rising to seven years for organized groups or large-scale violations. 

Russia’s Supreme Court has described the criminal penalties bill as premature until the broader digital currency framework takes effect, and it remains under review.

Further Readings Required Before July 2026 Target

The first reading approval signals political support with 327 of 340 deputies voting in favor. However, the bill must clear two additional State Duma readings, pass the Federation Council, and receive a presidential signature before becoming law. If approved in its current form, the legislation is set to take effect on July 1, 2026, with some provisions carrying later implementation dates.