Russia passes landmark crypto bill allowing regulated retail trading

Russia's State Duma passed a landmark crypto bill on Tuesday that brings digital asset trading under government oversight while opening the market to retail investors.

The legislation primarily establishes rules for crypto exchanges, custodians and brokers, which will need to join a special registry to operate legally. Existing exchanges will be given a roughly one-year grace period before their registration needs to be completed, according to state-run news agency TASS.

Under the new rules, everyday retail investors are allowed to purchase the most liquid cryptocurrencies through intermediaries after passing a knowledge test. The report did not specify which assets would qualify, though major cryptocurrencies such as bitcoin (BTC), ether (ETH) and Solana (SOL) are likely to be included.

The rules also put buying limits into place. Retail investors are only allowed to purchase up to 300,000 rubles, roughly $3,900, per year through each intermediary.

Meanwhile, qualified investors, who must also pass knowledge tests, are free to purchase any crypto assets with no caps. The report states that prior crypto trading experience could count toward obtaining qualified investor status.

All in all, the bill is a major shift from Russia's previous approach to crypto investments, which mostly only allowed wealthy or specially qualified investors to participate.

However, Russia is still maintaining its ban on using crypto to pay for goods and services domestically, allegedly to protect the ruble's dominance.

The legislation sets exceptions for foreign-trade settlement between Russians and overseas counterparties, crypto obtained through mining and certain transactions involving securities. Russia had already begun allowing crypto in international trade under an experimental framework in 2024 after Western sanctions made it difficult for the country to access conventional payment systems. 

Banks are also required to block transfers to recipients they suspect to be operating unauthorized crypto exchanges.

The legislation passed its first reading in April, when it was initially expected to take effect on July 1. Most of the provisions are now expected to go into effect on Sept. 1. The measure must still clear Russia's Federation Council and be signed by President Vladimir Putin before becoming law.