Russia’s State Duma approved a sweeping crypto bill on July 21 that brings trading into a licensed financial system. Industry critics say the rules could dismantle the market they claim to regulate.

Lawmakers passed Bill No. 1194918-8 in its second and third readings on the same day. It still needs approval from the Federation Council and President Vladimir Putin. 

The main rules would start on September 1, followed by a transition period ending July 1, 2027.

A Legal Market With Narrow Doors

The bill allows individuals and companies to buy and sell crypto through licensed Russian intermediaries. 

These will include brokers, asset managers, exchanges, digital depositories and a new class of registered crypto exchangers.

A digital depository would hold and record customers’ crypto, much like a traditional custodian. Crypto payments for goods and services inside Russia will remain prohibited.

Retail investors must pass a test and may buy only the most liquid assets selected under Bank of Russia criteria. 

Their limit will be 300,000 rubles per year through each intermediary. Current criteria would likely admit Bitcoin, Ethereum, and USDT. Qualified investors face no purchase cap.

Foreign Exchanges Lose Their Banking Rail

From July 1, 2027, Russian banks will have to block direct payments to unlicensed foreign exchanges. 

GMT Legal founder Andrey Tugarin said users will no longer be able to fund overseas platforms directly through Russian banks after that date.

Some crypto transfers will also face a 48-hour anti-fraud cooling period. The thresholds will be 300,000 rubles for transfers inside Russian infrastructure and 100,000 rubles when assets move into international infrastructure.

A Market Built From Scratch

Registered exchangers will need at least 15 million rubles in capital. They must install anti-fraud systems, separate client assets from company funds and meet strict compliance, staffing and cybersecurity rules.

“Crypto exchangers are a completely new legal form,” Tugarin said. No existing Russian company automatically holds that status.

However, the bill gives exporters, importers, miners, exchangers and depositories wider access to crypto for foreign trade. It also creates a clearer route for USDT, USDC and other stablecoins by classifying them as foreign digital instruments.

“This Is a Ban”

Exved founder Sergey Mendeleev said the industry had submitted detailed proposals since December 2025, but lawmakers largely ignored them.

He argued that the framework favours selected banks, exchanges and foreign-trade participants while restricting ordinary users and existing crypto businesses. 

Traditional financial firms could also lose millions before realising crypto trading will not produce the margins they expect, he said.

“This is not regulation. It is a ban. Like casinos or forex,” Mendeleev concluded.

The bill creates legal crypto access through a tightly controlled domestic system. Its survival will depend on whether users and businesses accept those limits or continue operating outside it.

Source: BeInCrypto