Russia advances cryptocurrency legislation, potentially paving the way for criminal penalties

Odaily Planet Daily News: On Tuesday, the Russian State Duma considered and passed, in its first reading, a draft bill titled “On Digital Currencies and Digital Rights,” Draft Bill No. 1194918-8. The bill aims to establish a core legal framework for Russia’s digital currency, directing cryptocurrency trading to licensed intermediaries supervised by the Bank of Russia. Under the bill, Russian residents will be able to purchase cryptocurrencies through approved intermediaries as early as July, while unlicensed platforms will be banned from July 2027.

The bill introduces restrictions for retail investors, allowing them to purchase only digital currencies with high liquidity. The relevant assets must meet standards such as an average market cap over the past two years exceeding 5 trillion rubles (approximately $66.66 billion), daily average trading volume exceeding 1 trillion rubles (approximately $133.3 billion), and having at least five years of trading history, among other requirements. Retail investors must pass a test, and the annual purchase limit is 300,000 rubles (approximately $4,000) for purchases through a single intermediary. In addition, the bill allows residents to purchase cryptocurrencies through foreign accounts, but requires reporting to the tax authorities, while also clearly prohibiting the use of cryptocurrencies for payments.