Russia’s government has approved draft legislation that channels domestic cryptocurrency trading through licensed intermediaries and sharply curtails retail access. The Finance Ministry said the package legalizes circulation of digital currencies and digital rights while prohibiting direct transactions in digital currency outside regulated intermediaries, increasing state oversight but allowing limited participation for non‑qualified investors and wider access for qualified ones.
Under the new framework, the Bank of Russia will specify which of the “most liquid” digital currencies may be purchased by retail investors. Individuals wishing to buy crypto through domestic intermediaries must pass a suitability test and will be capped at 300,000 rubles (about $3,700) per year via a single intermediary. Residents would still be able to acquire crypto through foreign accounts, but such transactions must be reported to tax authorities, signaling an effort to bring trading into formal oversight rather than ban it outright.
The legislative package consists of bills on digital currencies and digital rights, amendments to several existing laws, and revisions to the administrative offenses code. It creates a licensing regime for entities engaged in cryptocurrency operations — including digital exchanges and custodial services — and imposes administrative liability on organizations that carry out exchange activities without authorization. Banks and brokers may participate in crypto operations provided they meet specified prudential requirements.
Supporters say the measures will formalize the market, impose consumer protections, and give regulators tools to monitor flows and risks. Critics warn the restrictions could have the opposite effect, pushing activity into unregulated or offshore channels. Sergey Mendeleev, founder of Exved, cautioned that treating crypto like securities or over-restricting retail access risks moving trading into online and underground venues, comparing the potential outcome to how strict casino controls drove gamblers outside state supervision.
Taken together, the reforms represent a notable tightening of Russia’s approach to cryptocurrency: licensing for service providers, limits and testing for retail buyers, and reporting requirements aimed at bringing more crypto activity under formal supervision. The measures reflect a regulatory tradeoff—seeking control and oversight while leaving limited legal access for certain investors.