Putin Signs Russia's First Comprehensive Crypto Regulation Law

Russia has taken a significant step in regulating its cryptocurrency market with the adoption of a new law on digital assets. The law, titled 'On Digital Currency and Digital Rights,' was signed by President Vladimir Putin on July 24, after receiving approval from both chambers of Parliament.

The law establishes a comprehensive regulatory framework for digital assets, including Bitcoin, Ethereum, and USDT, which will be allowed to circulate freely on regulated platforms. However, direct use of cryptocurrencies as a means of payment remains prohibited, with the ruble retaining its status as the sole legal currency for settlements within the national territory.

The law sets specific obligations for market players, including specialized platforms, traditional financial institutions, and intermediaries, which will have to comply with a defined framework to offer crypto services in a regulated environment. Platforms will be required to keep transaction histories, monitor transfers, and detect suspicious activity.

Individual investors will be subject to a knowledge test and an annual purchase limit of 300,000 rubles. They must also pass a test to assess their knowledge of digital assets and associated risks before making any investment. Qualified investors will have access to a wider range of cryptocurrencies, while unqualified investors will only be able to buy up to 300,000 rubles worth of cryptocurrency per year through an authorized broker.