The State Duma Committee on the Financial Market has substantially revised the controversial bill "On Digital Currency and Digital Rights" for its second reading. The key change is the abandonment of rigid registries in favor of a flexible mechanism, where banks gain the right to independently block transfers if they suspect a connection with the illegal circulation of cryptocurrencies.
The original version of the document provided for maintaining two lists: one for organizers of illegal cryptocurrency circulation, and the second for foreign payment providers serving such individuals. Both registries were removed. Instead, the concept of an "unauthorized recipient" is introduced — a recipient of funds against whom the bank has reasonable suspicions of organizing digital currency circulation without official status.
Suspicion criteria — at the discretion of banks
Notably, the bill does not establish clear criteria for defining an "unauthorized recipient." The Bank of Russia also does not receive the authority to develop them. Each financial institution will independently define these indicators in its internal documents. This opens a wide field for subjective assessment and could potentially lead to opaque blockings.
Banks are required to transmit information about identified "unauthorized recipients" to the Central Bank. In response, the regulator may only provide information about foreign payment service providers servicing transfers in their favor. Publication of this data is not provided for.
Who and when is obligated to block
Payment agents, telecom operators, and participants of the digital ruble platform are excluded from the liability mechanism. The obligation to refuse transfers falls on credit institutions, branches of foreign banks, and payment card issuers. The bank must immediately notify the client of the refusal in the manner established by the contract. However, the procedure for notifying the "unauthorized recipient" themselves and the mechanism for contesting the blocking are absent from the document.
The bill provides for three exceptions when a bank is not obligated to refuse a transfer:
- the transaction is related to a foreign trade contract;
- the transfer is carried out on behalf of an organization exchanging digital currency;
- the transaction is conducted on behalf of a broker or trustee, if permitted by the Bank of Russia.
The State Duma plans to consider the bill in its second reading on July 21. Let me remind you that earlier, First Deputy Chairman of the Central Bank Vladimir Chistyukhin stated that the law on regulating the crypto market in Russia will come into force on September 1.
My comment as an analyst: This bill is a clear step towards tightening control, but with ambiguous consequences. Abandoning formal registries in favor of subjective bank assessment creates a risk of selective enforcement and could hit bona fide market participants who find themselves "under suspicion" without clear criteria. The absence of a mechanism for contesting blockings is an alarming signal for investors. The market expects either an increase in gray schemes or a sharp transition to jurisdictions with more transparent regulation.