Russia passes crypto bill in first reading; permits use in foreign trade settlements

Russia's State Duma has passed a cryptocurrency bill in its first reading, establishing a regulatory framework for crypto market participants. The Bank of Russia will be responsible for licensing and overseeing crypto activities. The legislation permits licensed entities like exchanges and brokers to facilitate crypto circulation, with a simplified process for existing participants and banks expanding into the sector. It also introduces tiered market access for qualified and non-qualified investors, limiting non-qualified investors' crypto purchases. While crypto is recognized as property and protected in legal proceedings, it remains prohibited as a means of payment within Russia. However, the bill allows for its use in cross-border transactions, enabling Russian companies to settle with foreign counterparties and potentially bypass sanctions. The bill requires further readings before becoming law, with an expected effective date of July 1, 2026.

(Source：The Block)