Russia Duma backs strict crypto framework

TLDR

Russias State Duma has backed a sweeping crypto bill in its first reading that would tightly regulate digital assets while keeping domestic payments banned.

1. The bill creates a license-only, Bank of Russiacontrolled crypto market with strict retail limits and legal recognition of crypto as property.
2. It keeps crypto illegal for domestic payments but explicitly allows licensed cross-border use, partly to work around sanctions-constrained banking.
3. Unlicensed platforms and P2P trading face a phased clampdown and potential criminal penalties, with key measures planned for 20262027 if the package becomes law.

Deep Dive

1. Core Of The Strict Framework

The State Duma passed the first reading of bill 1194918-8 On Digital Currency and Digital Rights, establishing Russias core legal framework for crypto trading through licensed intermediaries under Bank of Russia oversight. This includes exchanges, brokers and custodians, all subject to central bank licensing and monitoring within a tightly controlled regime.

Reports highlight a tiered investor system where retail buyers face an annual cap of around 300,000 rubles (about 3,900 dollars) and are limited to most liquid assets meeting high market cap, volume, and age thresholds, while qualified investors have no such caps. Crypto is formally classified as property, giving it legal standing in disputes and bankruptcy but not as money for everyday spending.

2. Domestic Ban, Cross-Border Exception

The framework keeps the longstanding ban on using crypto for domestic payments, so the ruble remains the only legal tender for goods and services. At the same time, the bill explicitly allows crypto for foreign trade settlements, giving Russian firms a regulated way to pay or receive payments from foreign partners using digital assets.

Officials have framed this cross-border channel as a way to maintain trade flows where traditional banking and dollar clearing are restricted, effectively providing legal cover for crypto-based sanctions workarounds within a state-supervised system.

3. P2P Clampdown And What To Watch

The legislation phases in a ban on unlicensed platforms and direct P2P activity, with unregulated intermediaries targeted for shutdown from 2027 and tighter blocking and blacklisting measures starting earlier under central bank control. A companion bill proposes criminal liability for organizing digital currency circulation without a license, including fines and multi?year prison terms, although Russias Supreme Court has called such penalties premature until the main framework is fully in place.

Key next steps are the second and third readings, Federation Council review, and presidential signature. If adopted on the current timeline, core rules would apply from July 1, 2026, with the full P2P and enforcement regime only kicking in from 2027.

Conclusion

Russia is moving toward a highly centralized, compliance-heavy crypto model that channels activity through a few licensed venues, restricts retail speculation, and keeps everyday payments off the table. The main upside for crypto is formalized cross-border use in trade; the main risk is that aggressive controls and criminalization push unlicensed activity further underground while concentrating onshore flows in a small, tightly supervised set of assets and intermediaries.