Putin Signs Landmark Crypto Law in Russia

Russian President Vladimir Putin has signed a landmark law legalizing cryptocurrency trading in Russia, which will be regulated as part of the country's financial system. The Law on Digital Currencies and Digital Rights formalizes an already booming market, with Russia ranking as Europe's largest crypto market by transaction volume according to Chainalysis.

The new legislation creates a regulated cryptocurrency market where Russians can buy and sell approved cryptocurrencies through licensed platforms supervised by the Central Bank. New digital repositories will keep records of who owns crypto assets, similar to traditional financial assets. However, cryptocurrencies remain banned for everyday payments inside Russia.

Russian businesses can continue using cryptocurrencies for cross-border settlements, with exporters and importers able to settle transactions directly using crypto wallets or through licensed intermediaries. The move is intended to give Russian businesses more options for paying foreign partners at a time when Western sanctions have disrupted access to parts of the traditional international financial system.

The law also follows EU sanctions packages targeting Russia's digital currency market, which have banned transactions involving certain stablecoins and crypto platforms. Professional investors will face stricter rules under the new law, while retail investors will be limited to buying up to 300,000 rubles (about $3,800) worth of crypto per year through each platform.