Russia's State Duma passed the digital currency bill in its first reading, giving the central bank control over market access and transaction regulation.

The Russian State Duma (lower house of parliament) has passed the "Cryptocurrency and Digital Rights Bill" on its first reading, marking a key step towards the legalization of crypto assets in the country. According to the bill, the Bank of Russia will become the core regulatory body for the crypto market, responsible for issuing licenses, approving or prohibiting 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; the ruble will remain the sole legal tender. However, given Western sanctions, crypto assets can be used for cross-border trade settlements, including service payments and intellectual property transfers. Furthermore, the bill allows Russian residents to legally invest in crypto assets through licensed institutions, but will implement an investor tiered system, setting tests and annual investment limits for ordinary investors (a suggested cap of 300,000 rubles). Initially, only high-market-cap mainstream assets such as Bitcoin and Ethereum will be allowed to trade, with the central bank creating a whitelist. The bill is expected to be formally passed and take effect no later than July 2026. However, some lawmakers and banking professionals have criticized the regulations as overly strict, potentially affecting market activity and even causing funds to remain in the gray market. Simultaneously, supporting legislation is proposed to introduce criminal penalties, with a maximum sentence of seven years imprisonment for illegal cryptocurrency transactions. (Cryptopolitan)