Russia's Cryptocurrency Institutionalization Turning Point... Includes Investment Limits and Overseas Transaction Standards

Russia's State Duma plans to advance a cryptocurrency regulation bill for second and third readings on October 22. If passed, the legislation would establish a legal framework for cryptocurrency activities, set investment limits, and define cross-border transaction rules. The draft law, numbered 1194918-8 and titled 'Digital Currency and Digital Rights,' imposes annual purchase limits of 300,000 rubles (approx. 5.65 million KRW) for qualified investors and 100,000 rubles (approx. 1.88 million KRW) for cross-border transfers, while restricting non-qualified investors to 30,000 rubles (approx. 565,000 KRW) in purchases and 10,000 rub, (approx. 188,000 KRW) in transfers. The bill also allows cryptocurrency use in cross-border trade, enabling Russian companies to adopt it for international transactions. Anatoly Akhakov, chairman of the State Duma's Financial Markets Committee, emphasized the law's role in integrating cryptocurrency as a legal payment method. The legislation is expected to take effect on September 1, 2023, potentially institutionalizing Russia's cryptocurrency framework within a short timeframe.