With a decisive vote of 327 out of 340, Russia’s State Duma has given the green light to a pivotal digital currency legislation during its initial reading. This proposed regulation titled “On Digital Currency and Digital Rights” aims at crafting a formalized framework for licensed entities engaged in crypto trade and custody while continuing to restrict cryptocurrency payments within the country.
How will the new law shape cross-border transactions?
The legislation notably allows for the use of digital currencies in international trade transactions. Although no particular tokens were cited, major and liquid cryptocurrencies are anticipated to be considered for this purpose, pending approval by the Central Bank of Russia. XRP, often discussed in relation to cross-border solutions, is likely to remain a focal point in these developments.
What will be the new categorization for crypto institutions?
The bill categorizes five types of licensed institutions permitted to engage in crypto trading: crypto exchanges, brokerage houses, portfolio managers, custodians, and currency exchanges. Upon adoption, scheduled for July 1, 2026, Russians will gain the ability to legally purchase cryptocurrencies through these authorized platforms. However, asset transfers to individual wallets remain restricted, emphasizing centralized digital custody with strict regulatory oversight.
Key provisions include easing dependency on unofficial crypto channels by 2027 while prohibiting unlicensed crypto loans. Institutions blacklisted potentially as early as 2026 signal a shift towards more regulated ecosystems. Meanwhile, only large-cap and highly traded assets like Bitcoin, Ethereum, Solana, and XRP will be eligible for trading if approved by Russian financial authorities.
The bill passed by parliament is expected to allow only designated cryptocurrencies to be traded on organized exchanges. Coins with substantial market capitalization, trading volume, and proven track records will be eligible if approved by the Central Bank.
The nascent yet rapidly maturing derivatives market is noteworthy as the Moscow Exchange plans to roll out cash-settled futures for assets, including XRP, providing a trading bridge for institutional participants. This could strategically position XRP in Russia’s regulated market space, though spot trading remains limited for now.
Further, the legislation sets annual purchase limits for retail investors at around $4,000, proposing an entrance exam for non-qualified counterparts. Such measures reflect the authorities’ intent to control retail exposure while still offering expansive opportunities for institutional and qualified investors, aligning with international trade facilitation goals.
Ultimately, the legislative process requires two more successful readings within the State Duma, followed by a review by the Federation Council and presidential approval to become law. Lawmakers have a two-week window for introducing revisions or further suggestions, underscoring the dynamic and evolving nature of this regulation.
