Russia advances crypto bill with $3,800 limit for Bitcoin trade

Russia's State Duma advanced a bill classifying Bitcoin as property and permitting its use for international trade settlements.

Russia's State Duma advanced legislation classifying Bitcoin as property and allowing corporations to use cryptocurrencies for cross-border trade, while capping non-qualified investor purchases at 300,000 rubles ($3,800) annually through a single intermediary.

"Creating legal conditions for cryptocurrency use in Russia will allow companies involved in supplying goods to use crypto assets without excessive legislative restrictions," Anatoly Aksakov, chairman of the State Duma Committee on Financial Markets, said in comments reported by RBC.

The bill, which passed its first reading, imposes a 300,000-ruble annual limit on crypto purchases for non-qualified investors and a 100,000-ruble cap on transfers abroad. Qualified investors face higher thresholds of 3 million rubles for purchases and 1 million rubles for transfers abroad, according to the draft legislation No. 1194918-8, titled "On Digital Currency and Digital Rights." Domestic crypto payments would remain banned under the proposed framework, limiting retail use while opening corporate channels. The dual approach reflects the government's priority of maintaining financial stability while creating trade workarounds.

The legislation positions Russia among a growing number of nations exploring digital assets for international trade as sanctions reshape global payment corridors. Main provisions are expected to take effect Sept. 1 if the bill passes its second and third readings, Aksakov said, adding that the framework would allow companies involved in supplying goods to Russia to use crypto "without excessive legislative and legal restrictions."

Investor Tiers and Cross-Border Rules

The bill establishes a two-tier system distinguishing qualified from non-qualified investors, with the latter facing stricter purchase and transfer caps. Non-qualified investors would be limited to 300,000 rubles in annual crypto purchases through a single intermediary, while qualified investors could buy up to 3 million rubles. Transfer limits follow a similar pattern: 100,000 rubles for non-qualified investors versus 1 million rubles for qualified ones.

Companies involved in importing goods to Russia would be permitted to settle transactions using digital currencies, a provision aimed at reducing payment frictions caused by international sanctions. The approach mirrors frameworks in jurisdictions such as the European Union's Markets in Crypto-Assets regulation, which also segments investor protections by qualification status, and contrasts with China's outright ban on cryptocurrency trading. The bill's treatment of Bitcoin as property for legal purposes aligns Russia with tax and classification approaches in the United States and several European nations.

Timeline and Market Implications

The State Duma is scheduled to hold second and third readings on the bill Tuesday, Aksakov said. If approved, the main regulatory framework would take effect Sept. 1, creating Russia's first legal structure for cryptocurrency activity. The legislation would require crypto exchanges operating in Russia to comply with local registration and reporting requirements, bringing them under formal regulatory oversight for the first time. The bill marks a significant shift for Russia, whose central bank had previously proposed a blanket ban on crypto trading and mining.

The regulatory shift could increase demand for Bitcoin as a settlement tool among Russian trading partners, potentially boosting cross-border transaction volumes on the Bitcoin network. Russia's largest private bank, Alfa-Bank, has already begun testing crypto trading, pointing to growing institutional interest in digital assets despite the domestic payment ban. For global crypto markets, the development adds to a growing list of jurisdictions including the UAE, Singapore, and Switzerland that have created regulatory frameworks allowing digital asset use for trade and investment.

This article is for informational purposes only and does not constitute investment advice.