Russia passes crypto law for sanctioned trade rails
Russia's lower house of parliament has passed a framework legalising cryptocurrency for sanctioned cross-border trade, establishing state-controlled exchanges to replace shadow networks.
Russia’s State Duma passed a sweeping digital asset law on Tuesday, creating a state-controlled framework for cryptocurrency that explicitly preserves the ruble’s monopoly on domestic payments while legalising digital assets for foreign trade. Bill No. 1194918-8 now heads to the Federation Council and President Vladimir Putin for final approval, a process expected to take roughly two weeks.
The core financial significance lies in the cross-border provisions. The law formally legalises crypto settlements for international commerce, a practice previously handled by sanctioned grey-market networks like Garantex and the A7A5 stablecoin. By moving this activity under the supervision of the Bank of Russia, Moscow aims to build durable infrastructure to bypass Western banking restrictions and severed SWIFT connections.
The regulatory architecture takes effect on September 1, 2026. The central bank will license five categories of market participants—exchanges, brokers, management companies, depositories, and exchangers—requiring minimum capital of 15 million rubles, or about $190,000. Existing operators have until March 1, 2027, to comply.
Assets permitted on organized venues face strict liquidity thresholds: an average market capitalisation above 5 trillion rubles and daily volume above 1 trillion rubles. These limits are expected to confine early institutional trading to bitcoin and ether, while privacy coins remain entirely barred.
Retail access remains tightly restricted. Non-qualified investors are capped at purchasing 300,000 rubles of cryptocurrency annually through a single licensed intermediary, with foreign transfers limited to 100,000 rubles. Qualified investors face higher ceilings of 3 million rubles for purchases and 1 million rubles for transfers. All users must pass a risk-awareness test.
The state retains significant oversight through transaction monitoring rather than individual wallet disclosure. Large transfers to foreign or third-party accounts face a mandatory 48-hour holding period for regulatory review, giving authorities a window to block funds.
The legislation marks a definitive reversal for Moscow. In January 2022, the central bank proposed an outright ban on crypto transactions. The pivot followed Western sanctions, culminating in an experimental framework signed in August 2024. Anatoly Aksakov, chairman of the Duma Committee on Financial Markets, said the permanent law was "aimed at creating legal conditions for the functioning of cryptocurrencies in our country."
