Russia Draws Clear Line between Crypto as Property and Money

Russia has introduced its first comprehensive legal framework for cryptocurrency trading under a new law that comes into effect on September 1. The legislation, known as the Law on Digital Currencies and Digital Rights, allows Russians to buy, hold, and sell digital assets through licensed intermediaries but keeps direct cryptocurrency payments for goods and services illegal.

The government has been working on this regulation for years, with a major compromise between the Finance Ministry and the Bank of Russia. The law creates an entirely new licensing regime covering crypto exchanges, brokers, management companies, and other market participants. Only organisations entered into a special regulatory register will be permitted to operate legally.

Retail investors face a 300,000-rouble annual limit when purchasing cryptocurrencies through licensed intermediaries. Qualified investors do not have such limits but must complete testing before purchasing digital assets. The law also guarantees judicial protection for cryptocurrency holders and recognizes digital assets in legal disputes, bankruptcy proceedings, and other civil matters.

The new framework is aimed at bringing Russia's large cryptocurrency market under government oversight. According to Chainalysis, Russia is Europe's largest cryptocurrency market by transaction volume. Much of the existing activity has taken place through offshore exchanges and informal trading channels.