Russia Could Legalize Crypto Tomorrow

A Definitive Vote on Crypto Legalization

Russia's State Duma is preparing to vote on a bill that would formally legalize the use of cryptocurrency for international trade settlements and cross-border payments. The legislation would authorize the Central Bank of Russia (CBR) to establish an experimental regulatory framework allowing state-sanctioned entities to use $BTC and $USDT to bypass legacy banking infrastructure. If passed, the law could take effect in September.

The bill, formally titled "On Digital Currency and Digital Rights," would help Russian firms navigate sanctions by enabling transactions with overseas partners outside traditional financial systems. The timing is explicitly a legislative response to sanctions that have severed many major Russian banks from global payment infrastructure, including SWIFT.

What the Bill Would and Would Not Allow

The bill authorizes use of digital assets for cross-border international settlements by Russian businesses, while domestic circulation as a payment method remains prohibited. According to Kaplan Panesh, deputy chairman of the State Duma Committee on Budget and Taxes, this "allows Russian companies to settle with foreign counterparties in cryptocurrency, bypassing sanctions restrictions."

Only cryptocurrencies with market caps above 5 trillion rubles ($66.6 billion USD) and a five-year trading history qualify, making Bitcoin and Ethereum the expected first approvals. The Bank of Russia sits at the center of the oversight architecture: it issues platform licenses, approves or blocks transactions, and maintains sole authority over which digital assets may legally trade inside Russian-licensed infrastructure.

Crypto businesses would need to register if monthly turnover exceeds about 3.5 million rubles (around $38,000), with illegal activity above that level potentially resulting in criminal liability and prison sentences of up to seven years.

Despite strong support in the first reading, some lawmakers and committees have called for revisions. The State Duma Committee on Competition Protection warned that excessive regulation could hinder market development, while the Committee on Financial Markets urged greater clarity around non-custodial wallets and stronger legal safeguards for privately held assets.

In Russia, a bill must pass three readings in the State Duma before becoming law. The first reading addresses the general concept and framework. The second is the main working stage where amendments are proposed and voted on. The third is a final vote on the full bill. After the State Duma, the Federation Council must approve the bill within 14 days, followed by a presidential signature within another 14 days.

Sources:
Cryptonews: Russia Greenlights Crypto for Global Trade
Bitcoin Magazine: Russia Advances Sweeping Crypto Regulation Bill
Crypto Briefing: Russia's State Duma Advances Bill Regulating Crypto Market