Russia Closes in on Comprehensive Crypto Regulation

Russia is on the verge of establishing a comprehensive regulatory framework for digital assets. The State Duma, Russia's parliament, will hold second and third readings on its crypto regulation bill on July 21, bringing the legislation to a close after an initial vote in April that passed with 327 out of 340 lawmakers in favor.

The bill sets up a licensing regime administered by the Bank of Russia and recognizes digital assets as property rights. However, it maintains a strict ban on using crypto for domestic payments, limiting its everyday utility.

Licensed platforms could serve as tax agents, withholding income tax directly from crypto investors. The legislation introduces a two-tier system that splits the market into qualified and non-qualified participants, with non-qualified investors facing annual purchase caps of roughly 300,000 rubles (approximately $4,000). Qualified investors get no such limits.