Russia's State Duma is scheduled to vote on July 21 on draft law No. 1194918-8, which would establish a legal framework for digital currency operations under Bank of Russia supervision. The bill cleared its first reading on April 21 with 327 of 340 participating deputies voting in favor, and the Financial Market Committee recommended advancement on July 16. The legislation aims to create legal conditions for cryptocurrency functioning in Russia while restricting domestic payment use, as Moscow seeks alternative cross-border settlement channels amid Western sanctions that limit access to conventional payment networks.
Duma Schedules Final Vote After First-Reading Approval
Draft law No. 1194918-8, titled "On Digital Currency and Digital Rights," is scheduled for second and third readings on July 21, according to RBC reporter Anastasia Kuzmicheva. The Russian government introduced the proposal on April 1. Passage on July 21 would send the legislation to the Federation Council before reaching President Vladimir Putin for signature. Anatoly Aksakov, chairman of the Duma's Financial Market Committee, stated: "And tomorrow [July 21], we will adopt a law in the second and third readings aimed at creating legal conditions for the functioning of cryptocurrencies in our country."
Bank of Russia Proposes 300,000 Ruble Retail Investment Cap
The Bank of Russia is expected to set annual purchase limits for non-qualified investors and require risk testing. A proposed ceiling of 300,000 rubles, roughly $3,800, would restrict ordinary investors while qualified participants receive broader access. Russia's Finance Ministry estimates that roughly 20 million residents hold crypto. The final framework dropped an earlier demand that holders disclose individual wallet addresses. Reporting would instead focus on balances and transaction flows.
Cross-Border Crypto Trade Permitted While Domestic Payments Remain Prohibited
The proposal would recognize digital currency as property and permit licensed operators to support crypto transactions. Exchanges, brokers, custodians and other intermediaries would operate under Bank of Russia supervision. Crypto would remain prohibited as payment for goods and services inside Russia. Foreign-trade participants could use digital assets in cross-border settlements, widening access beyond the experimental regime already available to selected companies. Mining would remain under Federal Tax Service oversight rather than the Bank of Russia.
Sept. 1 Implementation Pending Additional Bank of Russia Rules
Anatoly Aksakov has said the legislation is expected to take effect Sept. 1. Additional Bank of Russia rules may be required before fully regulated trading begins. Regulated financial firms could gain opportunities in custody, brokerage and foreign-trade settlement services. Companies handling Russian crypto settlements could face additional compliance reviews or sanctions exposure, particularly when transactions involve restricted entities or counterparties.
FAQ
What did Russia's Duma vote on regarding crypto on July 21?
Russia's Duma voted on draft law No. 1194918-8 in second and third readings on July 21. The bill would establish a legal framework for digital currency operations under Bank of Russia supervision, permit licensed operators to support crypto transactions, and allow cross-border crypto settlements while prohibiting crypto as payment for domestic goods and services.
How much can Russian retail investors buy in crypto under the proposed law?
The Bank of Russia is expected to set an annual purchase limit of 300,000 rubles, roughly $3,800, for non-qualified investors. Qualified participants would receive broader access. The cap would restrict ordinary investors while Russia's Finance Ministry estimates roughly 20 million residents currently hold crypto.
When does Russia's crypto law take effect?
Anatoly Aksakov, chairman of the Duma's Financial Market Committee, has said the legislation is expected to take effect Sept. 1. Additional Bank of Russia rules may be required before fully regulated trading begins, leaving implementation dependent on further regulatory measures.
