- President Putin has signed Russia’s version of the digital asset market structure law, putting pressure on President Trump to pass the CLARITY Act as soon as possible.
- The new crypto law comes with the Russian central bank’s strict supervision and controls to protect investors and prevent illicit finance.
A new era of Cold War is upon us. After the space race, the US and Russia are at each other’s throats again. This time, their battleground is on cryptocurrencies.
Just like how it sent the first rockets and manned mission to space, Russia has overtaken the US in the digital asset race. While the US Congress is holding off on the CLARITY Act vote, President Vladimir Putin has already signed Russia’s own digital asset market structure bill on Tuesday, titled “On Digital Currencies and Digital Rights.”
The event puts pressure on President Donald Trump to reach a compromise with Democrats who are pushing back on some key provisions of the CLARITY Act as soon as possible.
Key Features of the New Crypto Law in Russia
Russia’s new federal law for crypto comes with strict financial and consumer safeguards. In addition to rigid anti-money laundering and illicit finance provisions, it authorizes only those included in the special registry of the Central Bank of the Russian Federation (CBR), the country’s central bank, to facilitate crypto trading. Hence, it allows consumers to interact only with them.
New Classifications for Crypto Investors
Moreover, the new law classifies investors into two classes depending on their risk profiles. Both must pass certain competency tests on a regulated platform to be allowed to invest in crypto assets.
Non-qualified investors can only access “highly liquid” digital assets, including but not limited to Bitcoin (BTC), Ethereum (ETH), XRP, and Solana (SOL). The law also limits their purchases to 300,000 rubles annually through a single intermediary.
On the other hand, qualified investors are those with verified experience and a deep source of capital. They are entitled to trade crypto and tokens offering digital rights without any restrictions on transaction amounts.
Establishing Crypto as Property and Investment
In a landmark move, the law codifies the taxonomy of crypto as property and investment asset. It therefore follows that it cannot be used for direct purchases of goods and services, unless converted into the local fiat currency first.
The country recognizes the ruble as its sole legal tender.
Cross-Border Transfer Controls and Temporary Cooling-Off Period for Non-Custodial Wallet Transactions
Meanwhile, cross-border settlements using crypto will fall under the CBR and the Federal Security Service of the Russian Federation’s (FSB) strict oversight. It likewise introduces a “cooling-off period” for crypto transfers exceeding 100,000 rubles from licensed platforms to non-custodial wallets, such as MetaMask, Trezor, or Ledger hardware wallets. It temporarily freezes funds within the reglementary period as a safeguard against illicit financing activities.
Furthermore, the law imposes strict rules on crypto and Bitcoin mining activities. It only allows them in regions not experiencing energy shortages, and of course, the companies should acquire the necessary license to operate.
Penalties for Violators
Violators will be subject to administrative or criminal prosecution depending on the gravity of the case. The new law offers a grace period for affected individuals and institutions until its full enforcement on July 1, 2027.
