Russian parliament passes law regulating crypto market

[Oshosondy]

You can read the news on https://lcx.com/en/cryptonews/russian-parliament-passes-law-regulating-crypto-market

The bill still requires approval by the Federation Council and President Vladimir Putin’s signature before it becomes law which will possibly be what would happen.

Russia’s State Duma, the lower house of parliament, approved bill No. 1194918-8, titled “On Digital Currency and Digital Rights,” in its second and third readings on Tuesday, according to official parliamentary records.

If enacted, the bill would establish rules for crypto market participants, including exchanges, brokers, asset managers and custodians, while allowing crypto assets to be used in foreign trade operations.

There are more things to be read, like non-qualified investors annual limit and the implementation expectation periods and foreign trades.

[Nwada001]

The bill would continue to prohibit the use of crypto assets to pay for goods and services inside Russia. At the same time, it would allow crypto assets to be used in foreign trade operations, reflecting Russia’s broader effort to facilitate cross-border settlements outside traditional payment infrastructure.

Why are they still holding onto this part of the rules that I quoted above? I don’t think it’s as a result of protecting their currency, if crypto is gaining full regulation and approval they should also allow citizens to decide if they can use it to pay for goods in the country and not to only hold it and consider it as a property.

[adultcrypto]

If this law will lift some of the limitations on the use of cryptocurrency, such as what Nwada001 quoted above, then it is a good step in the right direction. Furthermore, I was thinking the bill will address the aspect of limiting people to annual purchase of 300,000 rubles, something I consider a very big limiting factor for those with deep pockets and who might chose cryptocurrency to diversify their investment. Instead it only increase the limit as shown below

The bill introduces different rules for qualified and non-qualified investors. Non-qualified investors would face a 300,000-ruble (about $3,800) annual limit on crypto purchases through a single intermediary and a 100,000-ruble limit on transfers abroad. Qualified investors would face annual limits of 3 million rubles for purchases and 1 million rubles for transfers abroad.

What difference will this really make if there are still limitations?

[Comeacross]

The bill would continue to prohibit the use of crypto assets to pay for goods and services inside Russia. At the same time, it would allow crypto assets to be used in foreign trade operations, reflecting Russia’s broader effort to facilitate cross-border settlements outside traditional payment infrastructure.

Why are they still holding onto this part of the rules that I quoted above? I don’t think it’s as a result of protecting their currency, if crypto is gaining full regulation and approval they should also allow citizens to decide if they can use it to pay for goods in the country and not to only hold it and consider it as a property.

I remember reading something similar to this but that was China. Citizens can own and hold bitcoin but are not allowed to spend it within their territory. This is slightly different since they permit them to use it for foreign trades and only prohibited them from using it for local trades. Perhaps, they are not aware people don't need their permission to use it for foreign trades. Imagine owning a car you can drive elsewhere but not in your own town.

[Charles-Tim]

The bill would continue to prohibit the use of crypto assets to pay for goods and services inside Russia. At the same time, it would allow crypto assets to be used in foreign trade operations, reflecting Russia’s broader effort to facilitate cross-border settlements outside traditional payment infrastructure.

Why are they still holding onto this part of the rules that I quoted above? I don’t think it’s as a result of protecting their currency, if crypto is gaining full regulation and approval they should also allow citizens to decide if they can use it to pay for goods in the country and not to only hold it and consider it as a property.

That is how it is in most countries but the countries just prefer not to talk about it, what they fear is bitcoin not to take over their ruble which is not going to happen if bitcoin is used to pay locally in the country.

If bitcoin is accepted for cross border transactions by the governments to settle trades like crude oil and others, it will be very good.

[pooya87]

The bill would continue to prohibit the use of crypto assets to pay for goods and services inside Russia. At the same time, it would allow crypto assets to be used in foreign trade operations, reflecting Russia’s broader effort to facilitate cross-border settlements outside traditional payment infrastructure.

Why are they still holding onto this part of the rules that I quoted above? I don’t think it’s as a result of protecting their currency, if crypto is gaining full regulation and approval they should also allow citizens to decide if they can use it to pay for goods in the country and not to only hold it and consider it as a property.

All governments seek to have "control" and be able to surveil what people do. As a result, they prefer if people continued using centralized fiat payment systems so that they can monitor and control their activities. Therefore the ban on domestic payment using bitcoin.

But at the same time considering the US regime's sanctions on Russia, they are seeking to provide the same people with legal and regulated alternative means of payment and obviously bitcoin is perfect for that.

[MusaMohamed]

All governments seek to have "control" and be able to surveil what people do. As a result, they prefer if people continued using centralized fiat payment systems so that they can monitor and control their activities. Therefore the ban on domestic payment using bitcoin.

But at the same time considering the US regime's sanctions on Russia, they are seeking to provide the same people with legal and regulated alternative means of payment and obviously bitcoin is perfect for that.

They as governments and central banks dislike Bitcoin because they can not control a decentralized blockchain and they are unable to freeze bitcoins in non custodial wallets of their citizens without physical arrests.

They can do it easily with stable coins with smart contracts to free funds in non custodial wallets, if they want, while they can use not convincing reasons.

But governments don't want to rely on stable coins that they don't entirely control, so they have tried to make developments, pilots and consider CBDCs (Central Bank Digital Currencies) as their main tools in the future. Meanwhile, they use things like AML, KYC to gather as most information about their citizens as possible.

https://cbdctracker.org/
https://cbdctalks.com/

[BIT-BENDER]

You can read the news on https://lcx.com/en/cryptonews/russian-parliament-passes-law-regulating-crypto-market

The bill still requires approval by the Federation Council and President Vladimir Putin’s signature before it becomes law which will possibly be what would happen.

Russia’s State Duma, the lower house of parliament, approved bill No. 1194918-8, titled “On Digital Currency and Digital Rights,” in its second and third readings on Tuesday, according to official parliamentary records.

If enacted, the bill would establish rules for crypto market participants, including exchanges, brokers, asset managers and custodians, while allowing crypto assets to be used in foreign trade operations.

There are more things to be read, like non-qualified investors annual limit and the implementation expectation periods.

While the US are still going back and forth with their Clarity act the Russian Parliament are passing regulatory law.
I haven't yet read everything but I am already suspecting that the rules would be one that favors Russia as a country significantly than the Crypto-currency enthusiast.
Although if the laws can tackle significantly the fake exchanges, rug pull projects and scams then it would have made a substantial impact in Russia Crypto-currency field.

[Upgrade00]

Why are they still holding onto this part of the rules that I quoted above? I don’t think it’s as a result of protecting their currency, if crypto is gaining full regulation and approval they should also allow citizens to decide if they can use it to pay for goods in the country and not to only hold it and consider it as a property.

Most governments will not approve Bitcoin which they cannot control to be a legal tender. If people use it to purchase goods and services they cannot monitor what is being traded and control all flow of money, banks and governments do not like what they cannot control

On the other hand, they want to be able to use Bitcoin internationally to benefit from it being borderless and anonymous. It helps avoid sanctions to an extent.

[Catenaccio]

While the US are still going back and forth with their Clarity act the Russian Parliament are passing regulatory law.
I haven't yet read everything but I am already suspecting that the rules would be one that favors Russia as a country significantly than the Crypto-currency enthusiast.
Although if the laws can tackle significantly the fake exchanges, rug pull projects and scams then it would have made a substantial impact in Russia Crypto-currency field.

They are different nations with different structures. In Russia, if Putin wants it, he can do it very quickly at least so far until a day he either dies or has a coup d'état.

While new policies can be passed and enforced very quickly in Russia, if Putin wants, I am really skeptical that such policies will bring more wealth, happiness and better life quality for their Russian citizens.

After Putin started a war and invasion against Ukraine, months later with his national financial and economic problems, he passed the law to allow payments in Bitcoin and cryptocurrencies.

Legalization or taxation?
It's one of big questions in that article.

They are very quick with CBDC development too.
Russia digital rubble.
https://cbdctracker.org/currency/russian_federation-digital_ruble

[Ayers]

The bill would continue to prohibit the use of crypto assets to pay for goods and services inside Russia. At the same time, it would allow crypto assets to be used in foreign trade operations, reflecting Russia’s broader effort to facilitate cross-border settlements outside traditional payment infrastructure.

Why are they still holding onto this part of the rules that I quoted above? I don’t think it’s as a result of protecting their currency, if crypto is gaining full regulation and approval they should also allow citizens to decide if they can use it to pay for goods in the country and not to only hold it and consider it as a property.

They are actually allowing the use of crypto in foreign trade under the pressure of sanctions.
I don't think their govt would do this under normal circumstances.

Governments always want control. It's hard to monitor transactions in decentralized crypto, so they want to keep it in fiat system.
Like China, hold it, but don't spend it in your country. WTF? Have a car but can't drive it in the city? LOL

Spirit of Bitcoin is financial freedom, but here the Bank of Russia is being given a lot of power, which assets will be approved, how will everything work, and  all.

[Haunebu]

Russia? It's one of those countries where the government is pretty much a dictatorship just like China etc currently which is why I wouldn't really pay much attention to this sort of stuff. As some posters above already mentioned, ulterior motives are involved here.

They don't truly give a shit about crypto and probably never will. Don't expect some sort of crazy bull run due to these changes people.

[Cryptomultiplier]

The bill would continue to prohibit the use of crypto assets to pay for goods and services inside Russia. At the same time, it would allow crypto assets to be used in foreign trade operations, reflecting Russia’s broader effort to facilitate cross-border settlements outside traditional payment infrastructure.

Why are they still holding onto this part of the rules that I quoted above? I don’t think it’s as a result of protecting their currency, if crypto is gaining full regulation and approval they should also allow citizens to decide if they can use it to pay for goods in the country and not to only hold it and consider it as a property.

They are actually allowing the use of crypto in foreign trade under the pressure of sanctions.
I don't think their govt would do this under normal circumstances.

Governments always want control. It's hard to monitor transactions in decentralized crypto, so they want to keep it in fiat system.
Like China, hold it, but don't spend it in your country. WTF? Have a car but can't drive it in the city? LOL

Spirit of Bitcoin is financial freedom, but here the Bank of Russia is being given a lot of power, which assets will be approved, how will everything work, and  all.

Russia as I know already allows digital assets through its CBN structure and since government commercial institutions before this law came up and they just want to make the laws surrounding the use of cryptocurrency more strict that anyone operating with crypto currencies outside this law is tagged a criminal and would face justice and penalties as from September 1st, '26.
I wonder how much stricter they could get seeing that they are trying to bend the original function and operation of cryptocurrency to their own will by enforcing strict regulations.

The thing that beats my imagination is that no government is even taking the rise of AI inclusivity as seriously as crypto currencies when they know the havoc and energy expenditure that AI demands above crypto currencies.

 

[Nwada001]

Why are they still holding onto this part of the rules that I quoted above? I don’t think it’s as a result of protecting their currency, if crypto is gaining full regulation and approval they should also allow citizens to decide if they can use it to pay for goods in the country and not to only hold it and consider it as a property.

That is how it is in most countries but the countries just prefer not to talk about it, what they fear is bitcoin not to take over their ruble which is not going to happen if bitcoin is used to pay locally in the country.

They are all always afraid of what’s not even going to happen; allowing Bitcoin or even other cryptocurrencies to be used in settling trade won’t do as much harm to their currency as they always seem to think. It's just their fear of losing control and watching how their people are spending; that’s all I can think of.

If bitcoin is accepted for cross border transactions by the governments to settle trades like crude oil and others, it will be very good.

This law is just going to make it official; they have always been using crypto to settle international trades, especially since sanctions were placed on the country. They have been using their state-backed stablecoin A7A5 to settle international deals.

Russia as I know already allows digital assets through its CBN structure.

I guess you mean their central bank, which is the Bank of Russia, which should be abbreviated as CBR or CB. Saying CBN might confuse us, as it’s pointing at the Central Bank of Nigeria (CBN).

[Ndabagi01]

The bill would continue to prohibit the use of crypto assets to pay for goods and services inside Russia. At the same time, it would allow crypto assets to be used in foreign trade operations, reflecting Russia’s broader effort to facilitate cross-border settlements outside traditional payment infrastructure.

Why are they still holding onto this part of the rules that I quoted above? I don’t think it’s as a result of protecting their currency, if crypto is gaining full regulation and approval they should also allow citizens to decide if they can use it to pay for goods in the country and not to only hold it and consider it as a property.

This limitation they’ve still placed on this currency is not just making any meaning yet to me, what are they protecting by placing limitations and yet want it implemented. If locals can use it to pay for goods and services, how will they feel that such currency is of use in the country, they won’t feel interested in using it even for cross border payment unless it is the only option they’ll have left. Locals will get more familiar with the use of crypto for cross border payment if they've been using it consistently for buying of goods and services. This limitation is not making sense but I doubt if it’ll be look into anytime soon.

[Z-tight]

The annual cap of $3,800 and restrictions to certain cryptocurrencies placed on retail investors is nothing short of ridiculous. I do not think the government should group investors and decide what they can and cannot do. It would make more sense to have one binding regulation that everybody can follow.

I would have celebrated this regulation if it lifted the ban on using crypto as a currency within Russia, it does not have to even be a legal tender. If it is simply legal to spend crypto, then merchants would simply decide if they want to accept it or not and that would have been a good news for the crypto community in Russia, not to be i guess.

[BALIK]

This law seems like partial recognition & partial control. On one hand, the govt is recognizing crypto as property, creating a legal framework for licensed exchanges, brokers and custodians. On the other hand, the limit of 300,000 rubles per year for ordinary investors, a qualification test, and a ban on payments in crypto within the country remain. That is, they are opening up the market, but not giving full freedom.

If the govt decides on behalf of people who will invest how much then this is excessive paternalistic control, lol

[nikola22]

The annual cap of $3,800 and restrictions to certain cryptocurrencies placed on retail investors is nothing short of ridiculous. I do not think the government should group investors and decide what they can and cannot do. It would make more sense to have one binding regulation that everybody can follow.

I would have celebrated this regulation if it lifted the ban on using crypto as a currency within Russia, it does not have to even be a legal tender. If it is simply legal to spend crypto, then merchants would simply decide if they want to accept it or not and that would have been a good news for the crypto community in Russia, not to be i guess.

also there is $1300 limit on transfers abroad which is even more ridiculous. the law was passed to control the market and does not bode well for ordinary crypto investors. I think cryptocurrency exchanges under state control will be created. moreover, on such exchanges users' cryptocurrencies can be seized for any reason, such as speaking unfavorably about the government.

[lionheart78]

The bill would continue to prohibit the use of crypto assets to pay for goods and services inside Russia. At the same time, it would allow crypto assets to be used in foreign trade operations, reflecting Russia’s broader effort to facilitate cross-border settlements outside traditional payment infrastructure.

Why are they still holding onto this part of the rules that I quoted above? I don’t think it’s as a result of protecting their currency, if crypto is gaining full regulation and approval they should also allow citizens to decide if they can use it to pay for goods in the country and not to only hold it and consider it as a property.

The government even though hostile against cryptcurrency see the possible profit in it.  This simply tells us that they don't want to locally cater to crypto transaction but to be able to benefit from the opportunity allows its constituents to use it internationally.  That is somehow I interpreted what you quoted.

The Russian government passes this law to clearly state its stance and belief about the cryptocurrency market.

[Z-tight]

I think cryptocurrency exchanges under state control will be created. moreover, on such exchanges users' cryptocurrencies can be seized for any reason, such as speaking unfavorably about the government.

Cryptocurrency exchanges would have to be registered with the authorities in Russia before they can operate in that jurisdiction, so only authorized services are allowed to operate. However, this aspect is consistent with what you can find in other parts of the world. Russian banks are also going to reject tx's if they suspect it's from unauthorized entity:

Under the new law, banks will be required to refuse transfers if they suspect an unauthorized entity is operating a cryptocurrency exchange.

To be fair though, your funds can be seized in any crypto exchange operating in any jurisdiction, for any reason!