Russian Crypto Bill Clears First State Duma Reading, Allows Foreign Trade Payments

Russia's lower house of parliament, the State Duma, passed in a first reading a bill that would allow cryptocurrencies to be used for foreign trade payments.

The State Duma approved the legislation on April 21, The Block reported on April 22. The bill would designate the Central Bank of Russia as the regulator for cryptocurrencies and permit their use in foreign trade settlements.

It also lays out procedures for banks and brokers to enter the crypto market. Investment rules would vary depending on whether an investor is classified as qualified.

For non-qualified investors, cryptocurrency purchases would be capped at 300,000 rubles per person. Qualified investors would not face that limit.

The bill also would recognize cryptocurrency as property under Russian law. That would make legal protection for crypto assets possible in civil cases including bankruptcy and divorce.

The ruble would remain the only legal means of payment within Russia. While the bill would allow cryptocurrencies to be used as a payment method in cross-border transactions, it would continue to ban their use for domestic payments.

Kaplan Panesh, deputy chairman of the Russian parliament's budget and tax committee, said the ruble would remain Russia's only legal means of payment. The bill creates an exception allowing cryptocurrencies to be used in foreign trade, he added.

The legislation must still pass second and third readings in the State Duma, then be approved by the upper house and signed by the president before becoming law. If it receives final approval, it is set to take effect on July 1.