Russian State Duma Begins Final Deliberation on Cryptocurrency Regulation Bill

On Tuesday, July 21, 2026, the State Duma, the lower house of the Russian parliament, will convene for the second and third readings of the cryptocurrency regulation bill. These deliberations are considered the final stage of the legislative process to end the 'gray zone' era of digital assets in Russia. Prepared through numerous amendments since passing the first reading in April 2026, this bill is expected to accelerate the digital transformation of the Russian economy.

This bill reflects Moscow's pragmatic choice to formalize cryptocurrency as a means of international settlement while simultaneously controlling indiscriminate trading in the domestic market.

The background for the Russian government's haste in this legislation lies in the difficulties of trade settlement caused by international sanctions. Once the bill passes, exporters will be able to legally receive payments using Bitcoin and stablecoins. With approximately $11 billion in cryptocurrency trade already processed during a pilot period in 2025, this measure is expected to bring existing demand into the institutional framework.

New Regulatory Framework and Asset Classification

This bill grants clear legal status to digital assets and sets strict standards for market participants. In particular, it establishes a basis for legal protection by classifying cryptocurrency as 'property' and includes a tax reform plan that provides investors with tax benefits equivalent to those of existing bondholders. This is interpreted as a national commitment to recognize cryptocurrency as a formal asset class rather than a mere speculative tool.

• Recognition of property rights and establishment of legal status for digital currencies
• Allowing market access only through licensed intermediaries
• Achieving tax equity between cryptocurrency investors and traditional bondholders
• Allowing exchange listing only for assets that meet market capitalization and trading volume criteria

The change in the role of the Bank of Russia is also noteworthy. The central bank, which previously advocated for a total ban on cryptocurrencies, is now being reborn as a key regulatory body responsible for licensing and supervising market participants. The central bank plans to directly manage cross-border cryptocurrency flows with major trading partners such as China and Turkey, maintaining the ruble's status as legal tender while leveraging the efficiency of digital assets.

On the other hand, strong regulations are expected for domestic peer-to-peer (P2P) transactions. Starting July 1, 2026, only transactions through licensed intermediaries will be permitted, and direct P2P transactions are scheduled to be completely banned in 2027. During the transition period, authorities plan to phase out non-institutional transactions through measures such as payment blocking and blacklisting.

The cryptocurrency mining industry in Russia will also be placed under direct state control. The bill specifies new registration requirements for mining operators and aims to establish a system where the state can monitor the entire process from asset creation to payment. This is a measure to prevent mined assets from being used for illegal money laundering or terrorist financing, applying Anti-Money Laundering (AML) standards similar to Europe's MiCA regulations.

Domestic and international stakeholders are closely watching the impact this bill will have on the market. While the cryptocurrency community in Russia welcomes the inclusion into the institutional system, it is expressing concern over the liquidity contraction and infringement on individual transaction freedom that the P2P transaction ban may bring. Conversely, the government maintains that creating a transparent trading environment will increase market credibility in the long run.

International observers are paying attention to the impact Russia's move will have on global cryptocurrency regulatory standards. Although it claims the justification of complying with Anti-Money Laundering (AML) and Counter-Terrorism Financing (CFT) standards, it could effectively set a precedent for legalizing state-led sanction evasion routes. This is highly likely to lead to further tightening of digital asset regulations by Western countries in the future.

The final deliberation of the State Duma, scheduled for July 21, 2026, is expected to be a watershed moment in the history of Russian cryptocurrency. If the bill passes, Russia will begin in earnest an experiment to incorporate digital assets as a core pillar of the national economy. Once the bill takes effect after the President's signature, Russia's financial system will face a completely new phase, unlike anything before.