Russia votes on new crypto legislation on 21 July

Russia takes a major step towards formal crypto regulation. The State Duma will consider a bill on cryptocurrencies on 21 July in the second and third reading, meaning a final vote is imminent. The law establishes a legal framework for crypto activities in Russia while also focusing on combating fraud and illegal use.

What does the crypto law contain?

According to TASS, the bill introduces an official framework for legal crypto activities in Russia. An important part is that the law allows the use of cryptocurrencies in international transactions through officially recognised channels. That is notable, as Russia has long been looking for ways to facilitate international payments now that Western sanctions complicate financial flows.

Anatoly Aksakov, chairman of the State Duma’s Financial Markets Committee, says the law also aims to address fraudsters and criminals who abuse crypto. The idea is therefore not only to facilitate use, but also to better contain risks.

Limits for retail investors

Another notable part of the bill concerns retail investors without official investor status. They will be allowed to buy selected liquid cryptocurrencies, but only after passing a knowledge test. Moreover, there is an annual purchase limit of 300,000 Russian roubles per intermediary.

That threshold is relatively low and seems intended to limit risk for individuals. More experienced or qualified investors fall outside this restriction. If the State Duma approves the proposal on 21 July, it will be up to the Russian president to sign the law before it officially takes effect.