Russia’s State Duma passed Bill No. 1194918-8, “On Digital Currency and Digital Rights,” in its second and third readings on July 21. The legislation gives the country its first comprehensive legal framework for cryptocurrency, classifying digital assets as property while explicitly barring their use for everyday payments.
Digital assets as property, not money
The bill treats cryptocurrencies like property under Russian law. That means owners can hold, trade, and inherit digital coins — but they can’t use them to buy a coffee or pay a bill. The payment ban is absolute: no goods or services can be exchanged for digital currency within Russia. The distinction is deliberate. Lawmakers want to encourage investment and innovation without letting crypto undermine the ruble as legal tender.
A long-awaited legal framework
Russia has debated crypto regulation for years, but this is the first full law to pass both readings in a single day. The bill’s rapid progress through the Duma signals a push to get rules in place before the end of the current session. Until now, crypto existed in a gray zone — not illegal, but not clearly legal either. The new law gives exchanges, miners, and holders a defined status, though the payment ban will limit how freely they can use their assets.
What happens now
With second and third readings cleared, the bill moves to the next stages of the legislative pipeline. If it becomes law, Russia will join a small group of countries that have a dedicated crypto statute — but with a twist. Most other jurisdictions that regulate crypto allow at least some form of payment use. Russia’s outright ban on spending digital currency sets it apart. The law is expected to take effect after final approval and publication, though the exact timeline remains unclear.
