Russia Approves Digital Asset Law to Establish Licensing Framework for Crypto Service Providers

Russia has moved a step closer to introducing a comprehensive regulatory framework for digital assets after its parliament approved the Digital Currency and Digital Rights Act, paving the way for a licensed crypto market.

The legislation, which is awaiting the president's signature, is scheduled to take effect on September 1, 2026. It will establish a unified regulatory regime for cryptocurrency businesses, replacing the country's previously fragmented approach to digital asset oversight.

Under the new law, the Central Bank of Russia will be authorized to license five categories of crypto service providers: exchanges, brokers, dealers, asset managers, and custodians. Existing market participants will be granted a transition period until July 1, 2027 to comply with the new requirements, including meeting regulatory standards and joining approved self-regulatory organizations where applicable.

The legislation also introduces a minimum capital requirement of 15 million rubles for crypto exchanges, reflecting Russia's efforts to strengthen oversight of digital asset trading platforms and improve market integrity.

While the framework expands the legal status of cryptocurrency businesses, it maintains restrictions on the domestic use of digital assets. Cryptocurrencies will remain prohibited as a means of payment within Russia, preserving the country's longstanding position that the ruble is the only legal tender for domestic transactions.

However, the law expressly permits the use of digital assets in cross-border trade and international settlements, providing a regulated channel for businesses engaging in overseas transactions. The provision aligns with Russia's broader strategy of developing alternative payment mechanisms as companies continue to navigate international financial restrictions.

The new framework marks one of Russia's most significant crypto regulatory developments to date, providing greater legal certainty for licensed service providers while reinforcing the country's distinction between regulated digital asset services and the use of cryptocurrencies as domestic payment instruments.