The Russian State Duma passed a law Wednesday that sets up a regulated framework for cryptocurrency market participants — but also bans the use of digital assets for payments within the country. The bill now heads to President Vladimir Putin for his signature before it can take effect.
What the law does
Lawmakers in Moscow approved legislation that formally recognizes crypto market participants and creates rules for their operation. The move is part of a broader effort to bring the industry under state oversight. At the same time, the law explicitly prohibits using cryptocurrencies as a means of payment for goods and services inside Russia. That restriction leaves the door open for cross-border settlements and investment, but domestic crypto spending is effectively outlawed.
Why the ban matters
Banning domestic crypto payments cuts off a growing use case for Russians who had turned to bitcoin and stablecoins to bypass capital controls or avoid the weakening ruble. The Central Bank of Russia has long opposed any legalization of crypto payments, citing risks to financial stability. The new law gives the central bank and other regulators authority to enforce the ban, though enforcement details remain unclear.
Next stop: Putin's desk
Putin has not publicly indicated whether he will sign the bill. His approval is widely expected given the Kremlin's push for tighter control over financial flows. The law would take effect 10 days after official publication if signed. That timeline could put the new rules into force by early August.
What's left unresolved
The legislation does not address how individuals or businesses holding crypto today should transition to the banned-payment regime. Nor does it specify penalties for violations. Those details may come in separate regulations from the central bank or the finance ministry. For now, Russia's crypto industry — miners, exchanges, and traders — faces a legal framework that legitimizes their existence but sharply limits what they can do with the assets inside the country.
