Russia's State Duma is set to hold second and third readings of a bill targeting cryptocurrency fraud this week. The legislation, championed by Anatoly Aksakov, chairman of the State Duma Committee on Financial Markets, aims to crack down on the illegal use of digital assets inside the country. It also lays out a legal framework for using cryptocurrencies in international transactions — a move that could help Russia work around sanctions.
What the bill does
The bill has two sides. One is a fraud-fighting measure: prosecutors and regulators get clearer tools to go after shady crypto schemes. The other is a door-opener for cross-border payments. Crypto as a form of payment has been illegal in Russia since 2022. This bill would carve out an exception for international trade, effectively legalizing what many firms were already doing in a gray zone.
A slow pivot on crypto policy
Russia's been inching toward a more crypto-friendly stance for years. In 2023, President Putin signed a law legalizing cryptocurrency mining, but only for legal entities that get approval from the digital ministry. Later that same year, a separate bill legalized digital currency for international payments — widely seen as a way to dodge Western sanctions. Now top Russian banks are planning to launch crypto trading services once the new regulations kick in, with investor testing and purchase limits already in the works.
Putin's view on Bitcoin
Putin has been clear about where he stands. Speaking at a Moscow forum in December 2024, he said, 'Bitcoin, who can ban it? Nobody,' pointing to the rise of new payment technologies. He's also talked up Russia's natural advantages: cheap energy and cold weather, both of which make the country a natural hub for crypto mining.
The Duma is expected to vote this week. If the bill passes, the real work begins — regulators will have to write the fine print, banks will need to set up compliant services, and the anti-fraud provisions will face their first test. The timing isn't easy. Russia's crypto market has been running on trust and workarounds. This bill could either bring clarity or create new headaches.
