Russian State Duma advances crypto licensing bill in first reading
The legislation maintains a ban on domestic crypto payments but opens controlled access for foreign settlements and defines crypto as property under Russian law.
Russia’s State Duma has approved the first reading of draft law No. 1194918-8, ‘On Digital Currency and Digital Rights’, moving the country closer to a formal legal framework for cryptocurrency activity.
The bill would establish a legal framework for the circulation of digital currencies in Russia and vest key supervisory powers in the Bank of Russia. It would also reform parts of the existing framework for digital financial assets and digital rights.
The proposed legislation would channel cryptocurrency activity through regulated intermediaries, including licensed exchanges, brokers, and authorised financial entities. Firms already operating within the Bank of Russia’s experimental legal regime would be able to use simplified approval procedures.
The draft maintains Russia’s prohibition on the use of cryptocurrency for domestic payments, while creating a framework for the use of digital currencies in foreign trade and cross-border settlements.
Retail access would remain limited. Non-qualified investors would be subject to purchase limits, while professional participants and licensed institutions would operate with broader access under regulatory oversight.
The bill would also define digital currency as property, strengthening its legal status in areas such as disputes, enforcement, and insolvency.
The proposal reflects Russia’s effort to bring cryptocurrency activity under tighter state supervision while preserving selected use cases for international transactions. The bill must still pass further readings before becoming law.
Why does it matter?
The bill shows how Russia is moving towards a controlled crypto framework rather than full market liberalisation. By allowing regulated circulation through licensed intermediaries while maintaining a ban on domestic payments, the proposal would give the state greater oversight of digital asset activity. The foreign trade angle is especially significant because Russia has been exploring alternative settlement channels amid sanctions and restrictions on access to traditional financial infrastructure.
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