Russia’s State Duma has passed a comprehensive bill establishing a regulatory framework for digital assets, advancing the country’s efforts to formalize cryptocurrency activity.

The lower house of parliament approved the measure, known as bill No. 1194918-8, in its second and third readings on Tuesday. The legislation now awaits signature by President Vladimir Putin to take effect.

The bill sets rules for various market participants, including exchanges, brokers, custodians, asset managers and crypto exchangers. It grants the Bank of Russia significant oversight powers, including the ability to approve eligible crypto assets and issue detailed regulations.

Separate provisions apply to qualified and non-qualified investors. Non-qualified investors would face annual limits of 300,000 rubles (approximately $3,800) for crypto purchases through a single intermediary and 100,000 rubles for transfers abroad. Qualified investors would encounter higher caps of 3 million rubles for purchases and 1 million rubles for international transfers.

Domestic use of crypto assets for payments for goods and services remains prohibited. The legislation permits their application in foreign trade settlements to support cross-border transactions.

If signed, most provisions would enter into force on September 1, 2026, followed by a transition period ending July 1, 2027. After the transition, transactions must occur through regulated entities, with banks required to block non-compliant activity.

The central bank is expected to issue around 80 supporting regulatory acts by year-end. Additional bills addressing taxation and penalties for violations are also under consideration.

Industry representatives described the legislation as an initial step, noting that practical implementation will depend on further infrastructure development and detailed rules.