Russia Drafts Bill That Could Change Who Can Buy Crypto

Overview

Russia is on the verge of a significant legal shift that could broaden access to cryptocurrency for its citizens. Lawmakers in the State Duma are finalizing a draft bill aimed at lowering barriers for ordinary Russians while maintaining certain safeguards and restrictions.

Legislative Changes

The proposed legislation is noteworthy as it represents a departure from Russia’s previous stringent regulations surrounding cryptocurrency. Reports indicate that the bill seeks to remove cryptocurrencies from a special financial regulation regime, thereby integrating them more fully into the financial landscape of the country. This change could potentially transform the perception of cryptocurrency from an exclusive asset class to a more accessible investment opportunity for the average citizen.

Anatoly Aksakov, who chairs the State Duma’s Financial Market Committee, emphasized that the bill is designed to make cryptocurrencies a regular feature in the lives of Russians. The draft aims to allow individuals who do not qualify as “qualified investors” to purchase digital currencies, albeit with certain limitations.

Expanded Access with Limitations

Under the current draft, non-qualified investors would be permitted to acquire cryptocurrencies up to a specified annual cap. This cap is reportedly set at 300,000 rubles, which is approximately $3,800. The intention behind this limit is to enable broader participation in the crypto market while simultaneously mitigating the risk of significant financial losses due to market volatility.

However, ordinary buyers will still need to meet certain conditions to gain access to cryptocurrency investments. Reports suggest that individuals may be required to undergo basic checks, including a risk-awareness assessment, and must trade exclusively through licensed brokers or exchanges. This regulatory framework is designed to curb unregulated peer-to-peer trading, which has been a concern for Russian authorities.

In contrast, professional or qualified market participants would face fewer restrictions. They would have the flexibility to trade and hold a wider array of cryptocurrencies without annual limits, although they may still need to demonstrate a comprehensive understanding of the associated risks.

Legislative Timeline and Context

Lawmakers have indicated that the draft bill is ready for discussion in the upcoming spring parliamentary session. Should the State Duma approve the legislation, implementation could commence in 2026. Aksakov has stated that this legislative change could pave the way for cryptocurrency to become a “normal part of life” for many Russians.

Simultaneously, Russian regulators are working on additional cryptocurrency regulations. The Bank of Russia plans to introduce penalties for illegal crypto intermediaries starting in 2027. There is also an ongoing effort to establish a broader regulatory framework that encompasses both qualified and ordinary investors.

Restrictions on Use

Despite these advancements in investment regulations, Russia continues to prohibit the use of cryptocurrencies for purchasing goods and services within the country, a rule that has been in effect since 2021. Officials have clarified that the new bill will not alter this restriction, emphasizing that the focus remains on investment and asset holding rather than everyday transactions.

From Author

The proposed changes in Russia’s cryptocurrency regulations signify a pivotal moment for the country’s financial landscape. By potentially allowing broader access to digital assets, Russia could be fostering a more inclusive environment for investment, albeit with necessary precautions to protect less experienced investors. The ongoing development of regulatory frameworks will be crucial in determining how this evolution unfolds.

Impact on the Crypto Market

• The proposed bill could increase participation in the cryptocurrency market among ordinary Russians.
• A regulated framework may enhance investor confidence and promote safer trading practices.
• The introduction of annual purchase limits aims to protect inexperienced investors from significant losses.
• Continued restrictions on the use of cryptocurrencies for transactions may limit their adoption for everyday purposes.
• The proposed changes could signal a broader acceptance of cryptocurrencies within Russia, impacting market dynamics both locally and globally.