Russia’s government has passed a broad new cryptocurrency market law, providing the country with a regulated system for trading cryptocurrencies such as Bitcoin (CRYPTO: $BTC).
The “On Digital Currency and Digital Rights” legislation covers areas such as crypto custody and cross-border transactions using digital assets.
The legislation creates rules for companies operating in Russia’s crypto market.
More From Cryptoprowl:
The framework covers cryptocurrency exchanges, brokers, custodians and other intermediaries while placing the Bank of Russia at the centre of market supervision.
The legislation is reportedly headed for the desk of President Vladimir Putin, where he is expected to sign it into law.
Going forward, there will be a formal route for approved financial companies to provide cryptocurrency services within Russia.
Licensed exchanges, brokers, custodians and other intermediaries will be able to operate within the new framework, replacing much of the unregulated activity that takes place outside Russia’s financial system.
Russia’s Finance Ministry has estimated that domestic cryptocurrency trading totals $640 million U.S. per day.
But much of that activity takes place outside formal government and regulatory oversight. The new system seeks to bring crypto trading and custody into regulated channels.
The legislation places limits on non-qualified individual investors, capping their purchase of crypto to 300,000 rubles ($3,820 U.S.) per year.
Qualified investors will receive higher limits under separate rules.
The Russian legislation stops short of making Bitcoin or other cryptocurrencies legal payment methods inside Russia.
News of Russia’s new crypto laws arrive as the Clarity Act continues to work its way through the U.S. Congress in Washington, D.C.
Bitcoin is trading at $66,500 U.S. on July 20, a one-month high.
