The Russian State Duma Financial Market Committee approved the final version of the second reading of the cryptocurrency regulation bill on July 8, which will be submitted for formal second reading deliberation; Committee Chairman Anatoly Aksakov revealed several key adjustments. The second reading version cancels the requirement to compulsorily declare crypto wallet addresses, replacing it with only declaring balances and transaction records. A new amendment allows the legal use of cryptocurrency to purchase stock market securities and Russian Digital Financial Assets (DFA).
Key Adjustments in Second Reading: Cancellation of Compulsory Wallet Address Declaration, Replaced by Balances and Transaction Records
According to a public statement from Committee Chairman Aksakov, the most central adjustment in the second reading version is: canceling the requirement to compulsorily declare crypto wallet addresses, replacing it with only declaring balances and transaction records. Aksakov's reasoning is to protect personal information security, stating that this sensitive information "could be used against the Russian state."
This adjustment reflects the Russian legislature's consideration of balancing cryptocurrency regulatory transparency with the protection of residents' personal information. The bill's progress on the State Duma website had not changed since late April until this committee approval.
New Provisions: Additional Requirements for Purchasing Russian DFA and Trading on Foreign Exchanges with Cryptocurrency
According to reports, the second reading version adds two important permissions: First, the new amendment allows the legal use of cryptocurrency to purchase stock market securities and Russian Digital Financial Assets (DFA), opening a legal channel between crypto assets and traditional financial markets.
Second, in the foreseeable future, authorities plan to allow Russian legal brokers and asset managers to trade on foreign cryptocurrency exchanges; Aksakov stated that this "requires meeting some additional requirements, such as the jurisdictional friendliness of foreign exchanges," meaning the jurisdiction to which a foreign exchange belongs must meet Russia's "friendliness" standards.
Non-Qualified Investor Limit, Two-Day Freeze Rule, and Unsettled Position on Non-Custodial Wallets
According to the specific provisions of the second reading version, the bill introduces the following three restrictions for retail users and fund transfers:
Non-Qualified Investor Annual Limit: The annual crypto trading limit through a single intermediary is 300,000 rubles, limited only to "the most liquid cryptocurrencies."
Two-Day Freeze for Large Transfers: The bill stipulates that any "transfer of large funds abroad and to third parties" must undergo a two-day freeze review.
Non-Custodial Wallet Ban Not Resolved: Aksakov did not explicitly state whether the proposal to ban Russians from using non-custodial crypto wallets (i.e., wallets inaccessible to intermediaries or authorities) is retained.
FAQ
What are the core changes in the second reading of Russia's crypto regulation bill?
According to a public statement from Committee Chairman Aksakov, the main adjustments in the second reading version include: canceling the compulsory declaration of crypto wallet addresses (replacing it with declaring balances and transaction records); adding an amendment allowing the purchase of stock market securities and Russian DFA with cryptocurrency; introducing a two-day freeze rule for large transfers abroad and to third parties; and a 300,000 ruble annual limit for non-qualified investors.
Will Russia ban non-custodial crypto wallets?
According to Aksakov's statement, he did not explicitly clarify the final fate of the proposal to ban Russians from using non-custodial crypto wallets in his public explanation; this issue remains unresolved. For specific legislative results, refer to the official text after the bill is passed.
When can Russian legal brokers trade on foreign crypto exchanges?
According to Aksakov's statement, authorities plan to allow Russian legal brokers and asset managers to trade on foreign crypto exchanges in the foreseeable future, but additional requirements such as "jurisdictional friendliness of foreign exchanges" must be met; the specific implementation timeline and qualifications for foreign exchanges will be based on the final text of the bill and subsequent regulatory rules.
