Russia plans to finalize a bill establishing a legal framework for cryptocurrency and crypto settlements as soon as tomorrow, according to Russian media. Russia’s parliament, the State Duma, is preparing to hold final readings on draft bill No. 1194918-8, titled “On Digital Currency and Digital Rights,” the RBC reported Monday.
The proposed bill aims to establish a legal framework for cryptocurrency activities within the country. It would enable regulated crypto operations while maintaining a strict ban on domestic crypto payments, as well as permit sanctioned cross-border crypto settlements. If approved, the bill would introduce limits for non-qualified investors, including a 300,000 ruble ($3,800) annual limit on crypto purchases through a single intermediary and a 100,000 ruble limit for transfers abroad. Qualified investors would also face higher limits of 3 million rubles for purchases and 1 million rubles for transfers abroad, respectively.
Russia’s Recent Dive into Cryptocurrency
Russia has embraced the crypto industry in the last year, with private banks in the country beginning to offer crypto services. The move to legalize crypto trading would be a big change of tune for Russia, which had previously ruled Bitcoin and ETH as not real forms of currency. With the change of tune, Russia has quickly established itself as a premier crypto market in Eastern Europe, while offering a potential workaround to Western banking restrictions.
Anatoly Aksakov, chairman of the State Duma Committee on Financial Markets, said the main provisions are expected to take effect on September 1 if the bill is passed. Furthermore, he added that the legislation would allow companies involved in supplying goods to Russia to use crypto assets “without excessive legislative and legal restrictions.”
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At press time, the global crypto market cap sits at $2.2 trillion and has declined in the past year. Bitcoin has fallen as much as 50% in the past year, but has shown signs of recovery in the past week. The Russia crypto bill’s passage could be seen as a positive catalyst for the crypto market, and investors will likely monitor the status of the finalization of Russia’s bill and how it leads to an uptick in institutional adoption of cryptocurrencies.