Russia's Duma Passes Crypto Bill in First Reading, Clearing Bitcoin for Foreign Trade

Russia's State Duma on Tuesday passed the Digital Currency and Digital Rights Bill in its first reading, advancing a Russia crypto bill that gives the Bank of Russia authority to license market participants and permits cryptocurrency use in cross-border trade settlements while banning it as domestic payment, according to state news agency TASS. Bitcoin and Ether are expected to be the first assets whitelisted by the central bank.

The framework creates a narrow, state-supervised corridor for sanctioned Russian exporters to settle with foreign counterparties in crypto — a workaround to frozen correspondent banking channels cut off after the 2022 G7 sanctions package — while preserving the ruble's monopoly at home. Correspondent banking channels are the inter-bank relationships that let money move across borders; Russia lost access to most of them when major Western banks exited the market following SWIFT restrictions, leaving exporters hunting for alternative settlement rails.

What the State Duma Digital Currency Bill Does

The State Duma Digital Currency Bill passed its first reading on Tuesday and sets July 1, 2026 as the target effective date. It classifies cryptocurrency as property under Russian law, authorizes the Bank of Russia to license exchanges and intermediaries, and carves out a specific exception permitting Bitcoin foreign trade settlements for cross-border commerce.

Kaplan Panesh, deputy chairman of the Duma Committee on Budget and Taxes, told reporters the property classification would allow crypto to be defended in court, including in bankruptcy and divorce proceedings. "The ruble remains the only legal means of settlement in the country, but the bill creates an exception for the use of cryptocurrency in foreign trade," Panesh said, per TASS reporting relayed by The Block.

Non-qualified investors would be capped at 300,000 rubles (roughly $3,900) in crypto holdings, while licensed professionals face no such limit. Banks, brokers, and firms already operating under the Bank of Russia's experimental legal regime would qualify for a simplified access procedure. Accompanying legislation introduces criminal penalties of up to seven years for unauthorized crypto activity.

Bitcoin Price Reaction and Bank of Russia Cryptocurrency Licensing Regime

Bitcoin traded at $76,352, up 2% on the day and 7.67% over the past 30 days, according to WEEX market data. Ether was up 2.45%. BTC is trading roughly $11,600 below its level one year ago, per Fortune's daily price tracker.

Under the Bank of Russia cryptocurrency licensing regime, only high-market-cap assets will be admitted to the whitelist initially. Some lawmakers and banking figures have warned the strict licensing regime could push activity back into the grey market it was designed to replace. The Russian Association of Banks has proposed loosening the draft to permit transfers to non-custodial wallets abroad and to whitelist foreign crypto platforms — changes the current text would criminalize.

The bill must still clear second and third readings, the Federation Council, and a presidential signature, with July 1, 2026 targeted as the effective date.