Russia advances crypto bill after dropping wallet address disclosure rule

Russia’s State Duma committee has approved a revised cryptocurrency regulation bill for its second reading, removing a proposed requirement to declare crypto wallet addresses while adding provisions for crypto-funded investments and new transfer controls.

According to a statement shared through State Duma Financial Market Committee Chairman Anatoly Aksakov’s Telegram channel, the committee endorsed an updated version of the government-backed bill that is expected to move to its second, substantive reading. Records on the State Duma website have not yet been updated since the bill cleared its first reading in April.

Revised bill removes wallet address reporting

Among the biggest changes, the updated draft no longer requires cryptocurrency holders to declare wallet addresses. Instead, users would only need to report wallet balances and transaction volumes.

Aksakov said the revision is intended to reduce the risk of sensitive information being exposed in ways that could be used against Russia.

The revised text also introduces a provision allowing investors to legally purchase traditional securities and Russian digital financial assets (DFAs) using cryptocurrencies. Russia’s DFAs are tokenized financial instruments issued under domestic law and are regulated separately from cryptocurrencies.

Looking further ahead, Aksakov said the government also plans to allow licensed Russian brokers and asset managers to trade on foreign cryptocurrency exchanges and through overseas crypto exchange services. He added that such access would depend on additional conditions, including whether those foreign jurisdictions are considered friendly by Russian authorities.

Retail limits remain while new transfer restrictions appear

Retail investment limits included in earlier versions of the legislation remain unchanged. Aksakov confirmed that non-qualified investors would still be limited to purchasing up to 300,000 rubles worth of the most liquid cryptocurrencies each year through a single intermediary.

The latest version also introduces a new requirement to freeze certain transfers for up to two days when they involve large amounts sent abroad or transferred to third parties. Aksakov did not specify the threshold that would trigger the delay.

He also did not clarify whether lawmakers had retained an earlier proposal that could prohibit Russians from using non-custodial cryptocurrency wallets, where only the wallet owner controls the private keys.

The legislation first passed its initial reading in April, when lawmakers proposed placing the Bank of Russia in charge of licensing exchanges, brokers, and other crypto market participants. 

The draft also classified cryptocurrency as property, allowing digital assets to receive legal protection in matters such as bankruptcy and divorce proceedings, while continuing to prohibit cryptocurrency payments inside Russia except for approved cross-border trade.

If the bill completes its remaining readings in the State Duma and secures approval from the Federation Council and the president, it is expected to form the foundation of Russia’s new crypto market framework alongside the country’s digital asset initiatives. 

The legislative process comes weeks before the Bank of Russia is scheduled to launch the digital ruble on Sept. 1, with major banks and large merchants set to begin supporting the central bank digital currency under the previously announced rollout plan.