Russia Approves Regulated Crypto Legalization

MOSCOW, Russia – The Russian government has approved a package of draft laws to legalize the circulation of digital currencies and digital rights, introducing strict regulations that channel all domestic cryptocurrency transactions through licensed intermediaries while imposing limits on retail investors.

The Finance Ministry announced the approval on Monday, stating that the framework prohibits transactions involving digital currencies without regulated entities such as digital depositaries, exchanges, and professional market participants including banks and brokers. These intermediaries must meet specific prudential requirements to operate. The bills, which also amend existing legislation and the administrative offenses code, establish licensing for crypto service providers and introduce penalties for unlicensed activities. Officials expect the package to be submitted to the State Duma next week.

Under the proposed rules, nonqualified investors – typically everyday individuals – face significant barriers to participation. They must pass a knowledge assessment before purchasing digital assets and are limited to an annual cap of 300,000 rubles, approximately 3,700 U.S. dollars,...