Russia's Duma clears crypto bill for foreign trade use

Russia's Financial Market Committee approved a crypto regulation bill for a second reading in the State Duma, moving the country closer to formal rules for digital currency. The draft law "On Digital Currency and Digital Rights" would recognize digital currency as property under Russian law, a change that strengthens owners' positions in disputes and insolvency cases.

The bill keeps a ban on domestic crypto payments. It allows cryptocurrencies in foreign trade and cross-border settlements. Court protection for crypto ownership would become unconditional. Requirements for declaring foreign wallet addresses would ease.

The State Duma is expected to adopt the bill within two weeks after amendments. Market participants are watching for the Bank of Russia's whitelist of permitted coins and any retail purchase limits. Geopolitical ties with "friendly jurisdictions" could shape how the cross-border provisions work in practice.

Russia has debated crypto regulation for years. The current push follows Western sanctions that cut the country from parts of the global financial system. Lawmakers have framed the bill as a way to facilitate international trade without relying on the dollar or euro. The central bank has historically opposed crypto use inside Russia, citing financial stability risks.

The property classification is the key legal shift. Under current Russian law, crypto assets sit in a gray zone. Courts have issued conflicting rulings on whether they count as property in bankruptcy proceedings. The new bill would settle that question, giving holders clearer rights if an exchange or counterparty fails.