Russia's State Duma Passes Crypto Bill in Its First Reading

Key Points

• Cryptocurrency is classified as property and will get legal protection in bankruptcy and divorce cases. 
• The Bank of Russia will act as the primary regulator, overseeing licensing and crypto market activity. 
• The bill must pass two more readings and final approval before becoming a law. 

Russia has taken a major step towards formalizing its cryptocurrency framework. According to the state news agency TASS, the State Duma, the lower house of the Federal Assembly of Russia, has approved a key crypto bill in its first reading. Cryptocurrency is now recognized as property in the country. The proposed legislation outlines a structured approach to regulating digital assets while making limited international payments possible. 

Central Bank Oversight

As reported by TASS, the Bank of Russia will serve as the authority responsible for licensing market participants and overseeing crypto activity in the country. The bill also outlines which entities are permitted to facilitate the circulation of cryptocurrencies. These include exchanges, brokers, and other licensed financial institutions.  

A key feature of this bill is the introduction of a tiered market access system. Non-qualified investors would face a purchase cap of up to 300,000 rubles worth of crypto, while professional participants would have no such restrictions. This approach aims to balance market growth with investor protection. 

The bill defines cryptocurrency as property, however, it maintains strict limitations domestically. It prohibits the use of crypto as a payment method for goods and services in Russia. The legislation allows cryptocurrencies to be used for cross-border transactions. 

Kaplan Panesh, deputy chairman of the State Duma Committee on Budget and Taxes, said, “This allows Russian companies to settle with foreign counterparties in cryptocurrency, bypassing sanctions restrictions.” He further added that classifying crypto as property would allow crypto assets to be protected in court, including in divorce and bankruptcy cases.

The bill must pass the second and third readings in the State Duma before it advances to the Federation Council and President Putin’s desk for signing. According to the report, the bill is expected to take effect on July 1, 2026, if passed.