Russia’s parliament has adopted a major crypto regulation bill that creates the country’s first comprehensive framework for digital currency circulation, according to RBC.

Submitted by the government on April 1, the bill, officially known as “On Digital Currency and Digital Rights,” moved through the legislative process after passing its first reading in late April before receiving approval in the second and third readings.

The legislation establishes rules covering crypto exchanges, brokers, custodians, and other market participants while defining how individuals and businesses can buy, store, and trade digital assets.

Under the new framework, only licensed entities will be allowed to facilitate crypto transactions. The legislation recognizes five categories of regulated crypto businesses, including exchanges, brokers, management firms, depositories, and exchangers, while introducing separate conditions for professional and retail investors.

The regulations will take effect from September 1, 2026, with market participants receiving until July 1, 2027, to comply.

After that deadline, banks must reject any crypto transactions conducted outside of the approved system. Certain provisions related to election authorities accessing crypto data and measures against fraudulent transactions will come into force later in 2027.

The government said the law aims to bring crypto activity under oversight while enabling its use in international commerce.

Although crypto cannot be used as a payment method for domestic purchases, businesses involved in foreign trade will be allowed to use digital assets for cross-border transactions.

Regulators will also continue developing related rules covering crypto taxation, liability for violations, and measures against fraudulent transactions.