Russia establishes 1st comprehensive legal framework for cryptocurrencies, digital assets

Russian President Vladimir Putin signed a law Tuesday establishing the country's first comprehensive legal framework for cryptocurrencies and digital assets, state news agency Tass reported.

The law regulates the issuance, circulation, storage and accounting of cryptocurrencies and digital financial assets, as well as mining and the activities of crypto exchanges, digital depositories, brokers, clearing organizations and operators of digital asset platforms.

Only organizations listed in a special state register will be allowed to operate cryptocurrency exchanges. Existing operators may continue operating without registration until July 1, 2027. Registered exchanges must maintain at least 15 million rubles ($187,000) in capital and join a self-regulatory financial organization.

The law defines exchange activity as the regular purchase and sale of cryptocurrencies on an organization's own behalf outside organized trading. Transactions totaling more than 3.5 million rubles in a month will qualify as regular exchange activity.

The legislation maintains Russia's ban on using cryptocurrencies and digital rights as a means of payment for goods and services. It also prohibits advertising or disseminating information promoting cryptocurrency payments.

Several exceptions are permitted, however, including settlements under foreign trade contracts between residents and nonresidents, transactions involving cryptocurrencies obtained through mining, payment of fees within digital asset platforms and settlements involving securities, digital rights or other cryptocurrencies.

Banks and branches of foreign lenders will be required to reject money transfers if they suspect an unauthorized entity is providing cryptocurrency exchange services.

The law also guarantees judicial protection of cryptocurrency owners' rights regardless of whether their digital assets were previously declared.

Retail investors will be allowed to purchase the most liquid cryptocurrencies through licensed intermediaries for up to 300,000 rubles per year with each intermediary. Qualified investors may buy any cryptocurrency without a purchase limit.

Qualified and retail investors must pass a mandatory knowledge test. Cryptocurrency trading experience may be used to qualify for professional investor status.

Most provisions of the law will take effect Sept. 1.