Russia is about to give digital assets something they’ve never had in the country: a proper legal home. The State Duma is scheduled to hold second and third readings on its comprehensive crypto regulation bill on July 21, bringing the legislation to the finish line after an initial vote in April that passed with 327 out of 340 lawmakers in favor.
What the bill actually does
The draft legislation, formally titled “On Digital Currency and Digital Rights” (No. 1194918-8), sets up a licensing regime administered by the Bank of Russia. It recognizes digital assets as property rights. The bill maintains a strict ban on using crypto for domestic payments. You can own it, trade it, and use it for cross-border transactions through regulated channels, but you can’t buy your morning coffee with Bitcoin in Moscow.
The investor protection framework introduces a two-tier system that splits the market into qualified and non-qualified participants. Non-qualified investors face annual purchase caps of roughly 300,000 rubles, approximately $4,000. Qualified investors get no such limits.
Licensed platforms under the new framework could also serve as tax agents, withholding income tax directly from crypto investors.
