Russia Gives Crypto Firms Until July 2027 to Obtain Licences Under New Market Rules

Russia's lower house of parliament, the State Duma, advanced the country's first comprehensive cryptocurrency regulatory framework toward final passage on July 21, 2026. Titled "On Digital Currency and Digital Rights," the bill requires two Senate votes and Presidential signature before taking effect on September 1, 2026—a two-month delay from the original July 1 target date attributed to coordination bottlenecks between government agencies, according to reporting from Russian outlet Kommersant. Anatoly Aksakov, chairman of the State Duma Committee on Financial Markets, indicated the additional approval process would require approximately two weeks.

The legislation establishes a mandatory licensing regime for all cryptocurrency exchanges, brokers, and custodian firms operating within Russia's jurisdiction. The Bank of Russia becomes the designated regulatory authority responsible for issuing licenses and retains discretionary power to prohibit any cryptocurrency it determines poses a threat to financial stability. Crypto firms currently operating without licenses will face a complete operational ban beginning July 1, 2027, effectively providing a one-year transition window to obtain formal regulatory approval or cease operations.

The framework implements strict qualification thresholds for tradeable cryptocurrencies. Only digital assets with market capitalizations exceeding 5 trillion rubles (approximately $65 billion) and demonstrating at least five years of verified trading history on licensed foreign exchanges qualify for retail access. This criterion currently limits retail trading to Bitcoin and Ethereum; however, the Bank of Russia is expected to expand the approved list to include the five to ten most-traded cryptocurrencies globally, potentially encompassing Solana and TON given their popularity within Russia. Non-qualified retail investors face annual purchase caps of $3,800–$4,000, significantly restricting retail participation while qualified institutional investors and business entities retain broader trading access.

The regulatory framework permits Russian citizens to continue holding cryptocurrencies and mining activities outside the licensed exchange system, while businesses and sole proprietors gain legal pathways to utilize digital assets in commercial operations. Penalties for unlicensed trading operators include potential imprisonment up to seven years for operators and up to four years for ordinary offenders, alongside financial penalties of approximately $1,300. Major Russian financial institutions have signaled compliance intent: VTB and T-Bank announced plans to establish regulated crypto depositories prior to implementation. The law represents Russia's shift from regulatory ambiguity toward formalized digital asset market infrastructure while maintaining restrictive consumer access and centralized Bank of Russia oversight.