The Russian State Duma has passed the cryptocurrency bill in its first reading, with the central bank set to control market access and transaction supervision.

On April 22, it was reported that the Russian State Duma (the lower house of parliament) had passed the Digital Currency and Digital Rights Bill in its first reading, marking a crucial step towards the legalization of crypto assets in the country. According to the bill, 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 prohibits their use as a means of payment domestically, with the ruble remaining the sole legal tender. However, amid Western sanctions, crypto assets can be used for cross-border trade settlements, including service payments and intellectual property transfers. Additionally, the bill allows Russian residents to legally invest in crypto assets through licensed institutions but will implement an investor tier system, imposing tests and annual investment limits on ordinary investors (with a suggested cap of 300,000 rubles). Initially, only high-market-cap mainstream assets such as Bitcoin and Ethereum will be allowed for trading, with a whitelist to be established by the central bank. The bill is expected to be formally adopted and come into effect no later than July 2026. However, some lawmakers and banking professionals criticized the regulations as being too stringent, potentially affecting market activity and even driving funds to remain in the gray market. Meanwhile, complementary legislation also plans to introduce criminal penalties, with illegal crypto transactions subject to a maximum sentence of seven years in prison.