Russia Passes Crypto Law With $3,800 Annual Cap for Retail Investors

Russia’s parliament on Tuesday passed legislation that creates a legal framework for cryptocurrency exchanges and digital-asset providers. Most rules take effect Sept. 1.

The law sets an annual limit of about $3,800 per intermediary for retail investors buying the most liquid cryptocurrencies. Qualified investors face no such cap, state news agency TASS reported. Only firms on a special registry can operate as exchanges, though existing operators have until July 1, 2027 to register.

Banks will have to reject transfers if they suspect an unauthorized entity is running an exchange. The law also guarantees judicial protection for digital-currency holders, even if the assets were not previously declared.

Russia’s central bank outlined the proposed framework in December. The legislation follows the European Union’s April sanctions package, which targeted crypto services in Russia. “Russia is becoming increasingly reliant on cryptocurrencies for international transactions,” the EU said.

The new law covers mining and issuance of cryptocurrencies, as well as services from brokers, asset managers, trading platforms and clearing houses. It does not lift the longstanding ban on using crypto for payments of goods and services inside Russia. Banks and others cannot advertise or promote crypto payments.

Several exceptions remain. Digital currencies can be used in foreign trade contracts between Russian residents and non-residents, for transactions involving mined crypto, for payments required by digital-asset platforms, and for settlements involving securities or other digital assets.

The law does not change Russia’s ban on domestic crypto payments. The Sept. 1 effective date applies to most provisions.