Russia Moves to Legalize Crypto for Retail Investors

Russia is preparing to introduce a landmark bill that would officially open the cryptocurrency market to its retail investors, signaling a major policy shift toward normalizing digital assets for everyday use.

Anatoly Aksakov, chair of the State Duma's Financial Market Committee, confirmed that the legislation is ready to be presented. He stated that developing digital financial assets and cryptocurrencies will be a significant focus during the upcoming spring legislative session.

"A bill has already been prepared that removes cryptocurrencies from special financial regulation, that is, they will be a common occurrence in our lives," Aksakov explained on Tuesday, according to state-owned news agency TASS.

Anatoly Aksakov, a key figure in Russia's legislative push, outlines plans to regulate cryptocurrency for mainstream use.

This move follows a December policy proposal from the Bank of Russia to permit non-qualified investors to purchase certain cryptocurrencies. The proposal marked a significant reversal from the central bank's previous consideration of a complete ban on crypto assets.

New Rules for Retail Crypto Trading

The proposed legislation aims to establish a tiered system for crypto investors. According to Aksakov, so-called "unqualified investors," such as typical retail traders, would gain limited access to the market. Their crypto purchases would be capped at 300,000 rubles (approximately $3,800).

In contrast, "professional participants" would face no trading restrictions. To qualify for this status, an individual would need to meet specific criteria related to income, knowledge, or education.

Aksakov also highlighted the potential for using crypto in cross-border transactions. "Cryptocurrencies can be actively used for international payments, including in order to further place them on the financial markets of other countries when issuing them here," he noted.

Currently, Russian law recognizes cryptocurrency as property but prohibits its use for payments. However, the use of crypto for international money transfers has grown since 2022, as many Russians and companies have turned to it to navigate sanctions imposed following the invasion of Ukraine.

Crackdown on Exchanges on the Horizon

Alongside the new investment framework, Russia is also planning a regulatory overhaul for cryptocurrency exchanges. Anton Gorelkin, who chairs the State Duma's Technologies Committee, is advocating for new rules to govern these platforms, as reported by Interfax on Wednesday.

Gorelkin stated on his Telegram channel that scammers are exploiting exchanges based in neighboring Belarus to target Russians, making it difficult for authorities to track illicit activities. "This in particular is why it is necessary to bring order to crypto exchanges, to create conditions for their legal activity on Russian territory," he said.

At present, crypto exchanges operate in an unregulated environment in Russia. Many international platforms exited the country due to sanctions, pushing local users toward informal peer-to-peer services and exchanges located abroad.

In late 2024, the Bank of Russia had already relaxed rules on crypto transactions for businesses. Its December proposal also included a framework for how exchanges, brokers, and trusts could manage digital assets.