Russia Opens Doors to Legal Crypto Market, Starting September 1

Russia has introduced a new law allowing for the legal circulation of cryptocurrencies, starting September 1. The 'On Digital Currencies and Digital Rights' law recognizes digital currency as property, provides judicial protection, and outlines procedures for circulation.

The Bank of Russia will oversee the new market segment with the financial intelligence agency, and a transition period until July 1, 2027, allows crypto exchanges to register and obtain licenses. The largest assets, such as Bitcoin, Ethereum, and Tether USDT, currently meet the selection criteria for non-qualified investors.

The law also establishes that citizens can buy cryptocurrency through licensed exchanges, brokers, or asset management companies using a ruble bank account, making it easier for part of the demand to come out of the gray zone. However, using crypto as an everyday payment system within the country is not allowed, and advertising cryptocurrency as a means of payment for goods and services is prohibited.

The head of the State Duma Committee on the Financial Market, Anatoly Aksakov, clarified that the Board of Directors of the Bank of Russia will be able to approve a whitelist of cryptocurrencies available to non-qualified investors for six months. The annual limit for purchasing cryptocurrency by non-qualified investors is 300,000 rubles.