Putin Signs Law Regulating Russia's Cryptocurrency Market

Russian President Vladimir Putin has signed a law regulating the country's cryptocurrency market. The law establishes licensing, custody, and trading rules for digital currencies in Russia. Entities on a special central bank registry will be permitted to run digital currency exchange activity.

The Central Bank of Russia (CBR) will supervise digital depositories holding digital assets. Banks will be required to block transfers they suspect are routed through an unlicensed exchange provider. The law keeps intact the existing ban on using cryptocurrency to pay for goods and services inside Russia, but allows exceptions for foreign trade settlements.

Retail investors without qualified status can buy only the most liquid cryptocurrencies, capped at RUB300,000 a year per intermediary after passing a suitability test. Qualified investors face no such cap and can also earn that status through their own crypto trading history.