Russia set to finalize crypto bill with cross-border use

Russia is set to finalize a crypto bill, banning domestic payments but allowing cross-border use, introducing investor limits, and establishing a licensing regime under the Bank of Russia.

Russia is moving to finalize a comprehensive cryptocurrency regulation bill, "On Digital Currency and Digital Rights" (No. 1194918-8), with second and third readings scheduled for July 21. The legislation establishes a licensing regime under the Bank of Russia and recognizes digital assets as property rights. While the bill maintains a ban on domestic crypto payments, it permits ownership, trading, and regulated cross-border transactions. A two-tier investor protection system is introduced, capping annual purchases for non-qualified investors at 300,000 rubles (about $4,000), with higher limits for qualified investors and minimal restrictions for foreign-trade participants. Licensed platforms may act as tax agents, withholding income tax from crypto investors. The revised bill removes the requirement to declare wallet addresses and adds provisions for crypto-funded investments and new transfer controls. If adopted, the main provisions are expected to take effect on September 1, aiming to provide a clear legal framework for digital assets in Russia, particularly for international trade.