Russia Introduces First Full Crypto Law as Putin Signs Historic Legislation

Russian President Vladimir Putin has signed the country's first full crypto law, marking a significant milestone in Russia's path to regulating its cryptocurrency market. The law, which comes into effect on September 1, establishes licensing rules for crypto exchange operators and creates a category of 'non-qualified' retail investors who can buy up to $3,800 worth of approved cryptocurrency per year through a single licensed intermediary.

The new law sets out minimum capital requirements for crypto exchanges, with operators needing to hold at least 15 million rubles (approximately $187,000) in order to register with a self-regulatory organization. It also creates a registry for exchange operators and introduces rules for digital depositories, which will be supervised by the Central Bank.

The law keeps two restrictions in place that had been under debate: cryptocurrency still cannot be used to pay for goods and services inside Russia, and advertising cannot suggest otherwise. However, there are carve-outs for cross-border trade and transactions involving mined cryptocurrency.