Woofun AI reports that legislative momentum for Russia’s cryptocurrency framework has accelerated as bill No. 1194918-8 advanced to its second reading in the State Duma, aiming to integrate cryptocurrency trading into a regulated system under the supervision of the Bank of Russia rather than granting it legal tender status. This procedural milestone marks a critical step toward formalizing market access rules, though the text remains subject to further parliamentary scrutiny before becoming law.

The legislative timeline reveals a structured but lengthy path to enactment, with the government having approved the package on March 30, 2026, and submitting it to parliament in early April. The bill was officially listed in the State Duma’s legislative database on July 20, 2026, for a second reading scheduled for July 21. Even after this stage, the proposal must survive a third Duma vote, secure approval from the Federation Council, and receive the president’s signature to become binding legislation.

Structurally, the regulatory scope distinguishes between permissible trading activities and prohibited uses, allowing licensed exchanges, brokers, and trust managers to handle cryptocurrency transactions while imposing separate requirements on specialist exchange and custody businesses. The Bank of Russia’s framework explicitly permits the buying and selling of digital currencies and stablecoins but bans their use to pay for goods or services within Russia. Foreign trade operates as a distinct use case, building on Russia’s existing experimental legal regime that already permits digital currency in certain cross-border contracts. The revised bill further clarifies exceptions for payments linked to foreign-trade contracts, tightening controls against unauthorized crypto activity while preserving legitimate international commerce.

Notably, major financial institutions are aligning their operational plans with the anticipated regulatory landscape. Sberbank has announced intentions to launch a crypto wallet by December 2026, signaling early adoption of compliant infrastructure. Similarly, Alfa-Bank has proposed a crypto custody service, indicating that traditional banks are preparing to offer regulated digital asset services once the legal framework is fully established. These developments suggest that the banking sector views the upcoming legislation as a catalyst for institutional participation rather than a barrier to entry.

Per Woofun AI, the framework introduces strict restrictions for non-qualified investors, who must first pass a risk test and are limited to purchasing cryptocurrencies that meet specific liquidity criteria. The annual purchase cap is set at ₽300,000, approximately $3,870, through one intermediary.

However, the precise application of this limit remains ambiguous; the central bank describes the ceiling as applying "via one intermediary," yet it does not clarify whether purchases made through multiple licensed firms would be aggregated. The final law or implementing rules must resolve whether the cap is per intermediary or per investor across the entire market, a distinction that will significantly impact retail trading behavior.

In contrast, qualified investors face fewer constraints, gaining broader access to cryptocurrencies without a general transaction limit after passing a risk test, except for anonymous assets designed to conceal transfers. While some reports have cited a ₽3 million annual cap for this group, the central bank’s official framework contains no such ceiling.

Furthermore, characterizations of the bill as Russia’s first recognition of cryptocurrency as property are misleading. On February 10, 2026, the Duma approved separate legislation treating digital currency as property under criminal and criminal-procedure rules, including procedures for freezing and seizing it during investigations. The current proposal focuses primarily on market access, approved intermediaries, and supervision rather than creating new property rights.

Enforcement of the new controls, requiring residents to use authorized intermediaries and targeting the illegal crypto market, is scheduled to begin on July 1, 2027. Until the final text is enacted, the ₽300,000 limit, eligible assets, and reporting procedures remain proposed rules rather than obligations already in force. This marks a significant shift toward state-supervised digital asset markets, though the final regulatory outcome depends on the remaining parliamentary approvals and the clarity of implementing regulations.