Russia's State Duma has approved the country's first comprehensive cryptocurrency law, creating a legal framework for exchanges, depositories and other digital asset providers, with most rules taking effect on September 1, 2026.

The legislation, passed Tuesday and reported by state-owned news agency TASS, sets out who may buy crypto and under what conditions. Only organizations included in a special registry will be permitted to operate as cryptocurrency exchanges, although firms may continue operating without registration until July 1, 2027.

The law also imposes obligations on banks. Credit institutions must refuse transfers if they suspect an unauthorized entity is operating a cryptocurrency exchange.

In a significant protection for investors, the legislation guarantees judicial protection for holders of digital currencies regardless of whether the assets were previously declared.

Retail Limits, Professional Freedom

Retail investors may buy the most liquid cryptocurrencies through licensed intermediaries, subject to an annual limit of roughly $3,800 per intermediary. Qualified investors face no restrictions and may purchase any cryptocurrency.

The law does not lift Russia's longstanding prohibition on using crypto to pay for goods and services within the country. It also bans banks and others from advertising and promoting crypto payments.

The statute preserves several exceptions. Digital currencies may be used for settlements under foreign trade contracts between Russian residents and non-residents, transactions involving mined cryptocurrency, payments required by digital asset platforms, and settlements involving securities or other digital assets.

Scope of Regulation

The new law oversees crypto mining activities, the issuance and circulation of cryptocurrencies, and services provided by brokers, asset managers, trading platforms and clearing houses.

Russia's central bank laid out the proposed framework in December 2025, which would legalize and regulate cryptocurrency trading for both individuals and institutions.

The legislation follows the European Union's most significant sanctions package against Russia, deployed in April 2026, which specifically targets crypto and includes a complete ban on providers and platforms established in Russia.

"Russia is becoming increasingly reliant on cryptocurrencies for international transactions," the EU said.

Consequences for Practitioners

For lawyers advising Russian-market clients, the new regime creates a two-tier compliance picture. Firms operating exchanges or custody infrastructure must weigh registration against the July 2027 deadline, while banks now face mandatory transfer-blocking duties tied to suspected unregistered operators. The $3,800 annual retail cap per intermediary, the carve-out for foreign trade settlements, and the guarantee of judicial protection for undeclared holdings each raise distinct structuring, disclosure and enforcement questions that counsel will need to resolve before the September 1 effective date.