TLDR
- Russia introduced three draft bills to regulate cryptocurrency and digital asset activities.
- The legislation defines digital financial assets and sets rules for payments and investments.
- Non-qualified investors can purchase up to 300,000 rubles per year after passing Bank of Russia testing.
- Qualified investors can buy unlimited cryptocurrency through licensed intermediaries.
- Residents must report foreign crypto wallets and transactions to tax authorities.
Russia has introduced new bills to regulate cryptocurrency and digital asset activities within its borders. The State Duma received three draft laws that define digital assets and set clear operating rules. The government aims to establish a structured framework and reduce illegal crypto transactions.
Russia Sets Legal Definitions and Transaction Rules
The proposed legislation defines cryptocurrency and digital financial assets under Russian law. Lawmakers outlined how citizens may use these assets for payments and investments. The bills also amend existing laws to prevent conflicts with current financial regulations.
Authorities prohibit cryptocurrency transactions without regulated intermediaries inside Russia. However, the bills allow citizens to purchase digital assets abroad through approved intermediaries. Lawmakers also recognize crypto transactions conducted outside Russia under foreign regulations.
The framework introduces a purchase limit for non-qualified investors. These investors may buy up to 300,000 rubles per year, about $3,730. They must pass testing conducted by the Bank of Russia before making purchases.
Qualified investors may purchase unlimited amounts of cryptocurrency through licensed intermediaries. Therefore, regulators created a tiered access system based on investor status. The Bank of Russia will oversee compliance and testing procedures.
Compliance Measures and Industry Response in Russia
The bills require residents to report crypto wallets opened abroad to tax authorities. Citizens must also notify authorities when they close those wallets. They must report all cryptocurrency transactions conducted outside Russia.
Authorities will penalize illegal crypto use with administrative fines. Regulators will also disqualify operators of unreported exchanges for up to two years. Lawmakers stated that these penalties target exchanges serving non-qualified investors without authorization.
Prime Minister Mikhail Mishustin addressed the objectives of the legislation. He stated that the measures will create Russia’s own digital currency infrastructure. He added that citizens will trade and store crypto on local platforms and custody providers.
Mishustin also said the framework will curb anonymous and illegal transactions. He stated that authorities aim to reduce tax evasion involving digital assets. According to Ria Novosti, the government expects stronger oversight under the new rules.
Industry participants have responded to the proposed requirements. Alexey Korolenko, executive director of Cifra Markets, commented on the impact. He said, “Many crypto exchanges in Russia today will be unable to meet the legalization requirements and will close.”
Korolenko indicated that exchanges must meet strict operational and reporting standards. Therefore, smaller platforms may struggle to comply with the new legal framework. Lawmakers continue reviewing the bills in the State Duma.
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