Russia’s State Duma passed legislation establishing the country’s first comprehensive framework for regulating cryptocurrencies with most of the new rules set to take effect on Sept. 1.
The law creates a legal framework for crypto exchanges, depositories and other digital asset providers, while setting rules for who can buy crypto and under what conditions, Russia’s state-owned news agency TASS reported Tuesday.
Only organizations included in a special registry will be permitted to operate as cryptocurrency exchanges, although firms will be allowed to continue operating without registration until July 1, 2027.
Under the new law, banks will be required to refuse transfers if they suspect an unauthorized entity is operating a cryptocurrency exchange.
The legislation also guarantees judicial protection for holders of digital currencies regardless of whether the assets were previously declared.
Retail investors will be allowed to buy the most liquid cryptocurrencies through licensed intermediaries, subject to an annual limit equivalent to roughly $3,800 per intermediary. Qualified investors will be able to purchase any crypto without restrictions.