The State Duma Committee on the Financial Market has significantly revised the draft law "On Digital Currency and Digital Rights" before its second reading. The key change is the abandonment of two registries in favor of a more flexible blocking mechanism based on banks' subjective suspicions.
From Registries to "Unauthorized Recipients"
Initially, two lists were planned: the first for organizers of illegal cryptocurrency turnover, and the second for foreign payment providers serving such individuals. Both registries have now been excluded. Instead, the concept of an "unauthorized recipient" is introduced—a recipient of funds whom the bank suspects of organizing digital currency turnover outside the legal framework.
Importantly, the draft law does not establish criteria for suspicion nor assigns their development to the Bank of Russia. Each financial institution will determine them independently in internal documents. This opens up broad scope for subjective decisions.
Blocking and Exclusion Mechanism
The obligation to refuse transfers is placed on credit institutions, branches of foreign banks, and payment card issuers. Payment agents, telecom operators, and participants of the digital ruble platform are excluded from this mechanism.
The bank is required to immediately notify the client of the refusal in the manner prescribed in the contract. However, the procedure for notifying the "unauthorized recipient" themselves and the mechanism for appealing the blocking are absent from the document, creating risks for bona fide market participants.
The refusal does not apply in three cases: the transaction is related to a foreign trade contract, the transfer is carried out on behalf of an organization exchanging digital currency, or on behalf of a broker/trust manager with permission from the Central Bank.
Information Exchange with the Regulator
Banks will transmit information about "unauthorized recipients" to the Central Bank. In response, the regulator will only be able to provide data on foreign payment service providers servicing transfers in their favor. Publication of this information is not provided for.
The State Duma plans to consider the draft law in its second reading on July 21. Earlier, First Deputy Chairman of the Central Bank Vladimir Chistyukhin stated that the law on regulating the crypto market will come into force on September 1.
Analytical Commentary: The shift to subjective criteria for suspicion is an alarming signal for the market. The absence of clear assessment rules and an appeal mechanism could lead to mass blocking of legitimate transactions. Banks will gain a tool for arbitrary control, which, in the absence of precedent-setting practice, will create high legal uncertainty for participants in crypto turnover.