Most cryptocurrency exchanges in Russia could shut down due to a new bill regulating digital assets.

The legislation, introduced last week in the State Duma, would ban cryptocurrency transactions without state-regulated intermediaries such as exchanges, brokers, and depositories, taking effect on July 1, 2027, The Caspian Post reports, citing The Moscow Times.

The bill also imposes strict limits on individual investors. Unqualified investors will be allowed to purchase no more than 300,000 rubles per year in cryptocurrency. Officials conducting illegal transactions with such investors could face fines of up to 50,000 rubles, while legal entities could be fined as much as 1 million rubles.

Industry experts warn that the measure could effectively close the market for most users and exchanges. Kirill Pistsov, head of product development at Finam, noted that Russia has up to 20 million cryptocurrency users but only around 1 million qualified investors. “Obviously, the new measure will affect the majority of users,” he told Baza.

One exchange owner, speaking anonymously, said most clients spend significantly more than 300,000 rubles annually, particularly for overseas travel and international purchases, where Russian bank cards are often unusable. Yuri Pripachkin, President of the Russian Association of Cryptocurrency and Blockchain, emphasized that clients would have to seek alternative payment methods if the law passes.

Experts predict severe consequences for the domestic crypto market. Alexey Korolenko, Executive Director of Cifra Markets, warned that most exchanges will struggle to meet legalization requirements and may be forced to close. Crypto analyst Sergey Mendeleev added that the upcoming market cleanup will likely occur faster than anticipated, leaving little time for exchanges to comply.

In addition, the government has proposed that Russian residents notify the Federal Tax Service when opening or closing foreign crypto wallets. Introduced on April 1, this separate bill would require residents to report both wallets and cryptocurrency transactions starting July 1. The proposal follows a March government package of bills regulating digital currencies.