Russia Enacts Cryptocurrency Law with Annual Retail Cap

Russia has taken a significant step in regulating cryptocurrencies by enacting its first law on the matter. President Putin signed the legislation, which sets an annual retail purchase limit at $3,700 and introduces a central bank-led licensing framework for cryptocurrency businesses.

The new law incorporates Russia's previously gray market into a controlled environment, with mechanisms to limit retail speculation through purchase caps and licensing thresholds. This move is part of Russia's efforts to prioritize ruble sovereignty and reduce capital outflows.

Russia has been experimenting with cryptocurrencies since 2022, allowing mining and some cross-border settlement experiments. However, the domestic payment ban was put in place during this time, reflecting concerns over capital outflows and ruble sovereignty.