Bill No. 1194918-8, designed to create a legal framework for the cryptocurrency market in Russia, has passed the preparation stage for the second reading. The relevant State Duma Committee on the Financial Market has already recommended adopting the updated document. This is a landmark step, given how significantly the original text has been revised since its approval in the first reading on April 21, 2026.
For the second reading, lawmakers introduced a number of fundamental innovations. The key one is that citizens are guaranteed full judicial protection of rights to digital assets, regardless of whether they have been previously declared. This fully aligns with the legal position of the Constitutional Court and removes one of the main fears of market participants.
New Rules for Investors and Intermediaries
To protect Russians working with foreign platforms, reporting rules have been relaxed. Instead of disclosing addresses of foreign crypto wallets, residents will only be required to declare fund balances and financial turnovers on them. This is a reasonable compromise that allows for effectively combating risks of confidential information leakage without exposing users to harm.
The activities of intermediaries are now strictly regulated. Crypto exchanges are required to send acquired assets exclusively to the buyer's own wallet. Digital depositories gain the right to freeze transfers of large sums abroad or to third parties for 48 hours. If an intermediary ignores these requirements, they must fully compensate the client for funds stolen by fraudsters. This is a serious financial liability that disciplines the market.
For non-qualified investors, access will remain limited: only the most liquid cryptocurrencies with an annual limit of up to 300,000 rubles through one intermediary and mandatory testing. Qualified investors will gain access to any assets without restrictions, but subject to passing a specialized test or confirming experience.
Professional brokers and managers will be able to legally trade on foreign crypto exchanges, but subject to additional conditions, including requirements for the friendliness of the host jurisdiction. The law also permits settlements in cryptocurrency for the purchase and sale of securities and Russian digital rights.
Timelines and Realities
Due to the huge number of amendments and protracted approvals, the final adoption of the initiative is being postponed to the fall. The Ministry of Finance has already officially confirmed that they will physically not have time to approve the document before the deadline. According to statements from the Central Bank and committee head Anatoly Aksakov, the final version should be adopted by July 27. However, this most likely refers to the second reading, not the final approval.
The accompanying package of laws establishing liability for violations will appear no earlier than the fall session. Accordingly, the legal norms will come into force closer to September 1. However, experts assess the chances of launching the system in early fall quite cautiously. If deputies do not approve the text in the second reading by the end of July, the system will definitely not be operational by September. A postponement of most key provisions to later in the fall will become inevitable.
My analysis: The current version of the bill is a complex balance between liberalization for professionals and strict control for retail investors. The relaxation of reporting on foreign wallets is a sensible measure, but the 300,000 ruble limit for non-qualified investors remains a significant barrier. The market is frozen in anticipation: if the law is eventually passed in the fall, it will be a powerful catalyst for the legal sector, but delays could lead to some businesses moving into the shadows.