Russia's State Duma passes the digital currency bill in a first reading, with the central bank gaining control over market access and transaction regulation

On April 22, it was reported that the Russian State Duma (lower house of parliament) has passed the first reading of the “Digital Currency and Digital Rights Bill,” marking a key step toward the legalization of crypto assets in the country.
According to the bill, the Bank of Russia will become the core regulatory authority for the crypto market, responsible for issuing licenses, approving or banning related transactions, and defining the legality of transactions. The bill proposes to recognize cryptocurrencies as “property,” but explicitly bans their use as a means of payment domestically, with the ruble remaining the only legal tender. However, under the context of Western sanctions, crypto assets can be used for cross-border trade settlements, including service payments, intellectual property transfers, and other scenarios.
Additionally, the bill allows Russian residents to legally invest in crypto assets through licensed institutions, but will implement an investor classification system, setting testing and annual investment limit restrictions for ordinary investors (recommended cap of 300k rubles). Initially, only high-market-cap mainstream assets such as Bitcoin and Ethereum will be permitted for trading, with a whitelist established by the central bank. The bill is expected to be officially passed and enacted no later than July 2026. However, some lawmakers and banking industry professionals criticize the regulatory approach as too strict, potentially impacting market activity, and even causing funds to remain in the gray market. Meanwhile, accompanying legislation is also proposed to introduce criminal penalties, with illegal crypto transactions punishable by up to 7 years in prison.