Russia has taken a major step toward integrating cryptocurrency into its global trade system. The State Duma has approved the first reading of a bill that would allow digital assets to be used for international payments—a move widely seen as a response to Western sanctions that have cut Russian banks off from systems like SWIFT.
The proposal builds on a framework introduced by the Central Bank in late 2025, turning years of back-and-forth policy discussions into something more concrete. If it passes the remaining stages, it could reshape how Russian businesses handle cross-border transactions.
The timing is significant. With roughly $240 billion in trade facing ongoing payment hurdles, exporters and importers are looking for alternatives. This bill offers a legal route to settle deals using crypto, effectively creating a new financial channel outside traditional systems.
In many ways, Russia is laying the groundwork for an alternative payment network—and this is the clearest sign yet of what that system might look like.
The bigger question now isn’t whether the law will pass—it likely will—but how quickly international regulators might respond to limit its impact.
Where the Bill Stands
So far, the bill has cleared its first reading. It still needs two more rounds of approval, along with sign-off from the Federation Council and the president, before it becomes law.
At its core, the legislation allows Russian companies to use cryptocurrency for international settlements. However, it stops short of allowing crypto as a payment method within the country. In other words, businesses can use it to trade globally, but everyday purchases in Russia will still rely on traditional currency.
Who Can Invest—and How Much
The bill introduces a tiered system for investors. Everyday retail participants would face an annual cap of 300,000 rubles (about $3,800) when buying crypto through a single platform.
More experienced or institutional investors—such as banks, professional traders, and high-net-worth individuals—would not face these limits.
Oversight would sit firmly with the Central Bank, which would control licensing, approve transactions, and decide which cryptocurrencies are allowed within the system.
Which Cryptos Make the Cut
Not every digital asset will qualify. The requirements are strict: only cryptocurrencies with a market value above 5 trillion rubles (around $66 billion) and at least five years of trading history would be eligible.
In practice, that means Bitcoin and Ethereum are almost certain to be the first approved assets. For now, the framework looks less like an open crypto market and more like a controlled entry point focused on the biggest players.
Mining Comes Under the Spotlight
The bill doesn’t stop at payments—it also introduces Russia’s first formal rules for crypto mining.
Both individual and large-scale miners would need to register under a national system. Operating outside it would eventually be treated as illegal, especially after a 2027 deadline for unlicensed activity.
The government is also keeping a close eye on energy use. Authorities would have the power to restrict mining in regions where electricity supply is already under strain—a growing concern in parts of Siberia and the Far East, where mining activity has surged in recent years.
What Happens next
There are still debates ahead. Some lawmakers have already warned that overly strict rules could push businesses back into informal markets, undermining the bill’s purpose.
That tension is likely to shape the next rounds of discussion, where details around enforcement and licensing will be refined.
