Russia advances cryptocurrency legislation

Mars Finance reports that on Tuesday, the Russian State Duma approved in its first reading a draft law titled “On Digital Currencies and Digital Rights,” numbered 1194918-8. The bill is intended to establish the core legal framework for Russia’s digital currency, directing cryptocurrency trading to licensed intermediaries regulated by the Bank of Russia. Under the bill, Russian residents may be able to buy cryptocurrencies via approved intermediaries as early as July, while unlicensed platforms will be banned in July 2027. The bill introduces restrictions for retail investors, stipulating that only digital currencies with high liquidity may be purchased. Relevant assets must meet standards such as an average market capitalization over the past two years exceeding 5 trillion rubles (about $66.66 billion), daily trading volume exceeding 1 trillion rubles (about $13.33 billion), and at least five years of trading history. Retail investors must pass a test, and the annual purchase limit through a single intermediary is 300,000 rubles (about $4,000). In addition, the bill allows residents to purchase cryptocurrencies through foreign accounts, but requires reporting to the tax authorities, while also explicitly prohibiting the use of cryptocurrencies for payments.