Tag: licensing

  • Russia’s State Duma Advances Final Crypto Regulation Bill: Investor Limits, Licensing, and Cross-Border Rules

    Russia’s State Duma Advances Final Crypto Regulation Bill: Investor Limits, Licensing, and Cross-Border Rules

    Russia’s lower house of parliament, the State Duma, has moved the country’s comprehensive cryptocurrency regulation bill toward final approval. The draft law, titled ‘On Digital Currency and Digital Rights’ (No. 1194918-8), is scheduled for second and third readings on July 21, 2026, and aims to create a formal framework for digital assets in Russia.

    Investor Classification and Licensing

    The bill divides crypto investors into two categories: qualified and non-qualified. Non-qualified investors must pass a knowledge test to purchase approved cryptocurrencies and would face an annual purchase limit of 300,000 rubles through regulated intermediaries. Qualified investors would enjoy broader access and higher transaction limits.

    Licensed exchanges, brokers, custodians, and exchange operators would operate under the supervision of the Bank of Russia. Unlicensed firms would face restrictions after a planned transition period. The revised text removed a proposed rule requiring holders to report individual wallet addresses; instead, users would report balances and transaction volumes, a change lawmakers say reduces exposure of sensitive ownership information.

    Cross-Border Crypto Trade

    While the framework maintains Russia’s ban on crypto payments for ordinary goods and services—keeping the ruble as the sole legal tender—it permits digital assets for selected financial and international transactions. Russian exporters and importers can use cryptocurrencies for eligible foreign trade settlements, building on previous experimental legal regimes.

    Anatoly Aksakov, chair of the Duma Financial Market Committee, confirmed the schedule: “Tomorrow, July 21, we will adopt the law in the second and third readings.” The proposal also allows crypto-for-crypto exchanges through licensed platforms, certain private securities transactions, and blockchain network fees using digital assets.

    Eligible Cryptocurrencies

    Only cryptocurrencies meeting strict market and trading requirements can enter public exchange trading. According to Interfax, Bitcoin and Ethereum currently meet those proposed thresholds. The central bank could temporarily approve other assets for up to six months.

    Timeline and Next Steps

    State Duma approval is not the final step. The bill must next pass the Federation Council and receive President Vladimir Putin’s signature before becoming law. Officials have targeted September 1, 2026, for the main provisions to take effect, a delay from the original July 1 target following extended negotiations and multiple amendments.

    The framework would recognize crypto as property, bring trading into licensed channels, and establish reporting, custody, and supervision rules. Separate legislation would create penalties for violating the new market requirements. Finance Ministry estimates placed domestic crypto trading near 50 billion rubles daily earlier this year, much of it operating outside regulated channels.

  • MiCA Deadline Forces Thousands of European Crypto Firms to Shut Down

    MiCA Deadline Forces Thousands of European Crypto Firms to Shut Down

    Crypto companies across Europe are reaching the end of the MiCA transition period, with July 1 marking the point when older national registrations will no longer be enough to stay in business. From that date, only firms that secured a MiCA license can continue offering crypto services across the region, placing many existing operators under pressure.

    Industry figures show the gap between previously registered firms and those that completed the new licensing process. More than 3,000 virtual asset service providers (VASPs) were registered before MiCA, yet only 244 have obtained authorization as crypto-asset service providers (CASPs). Meanwhile, the European Securities and Markets Authority has instructed firms without approval to wind down their activities in an orderly manner while protecting customer assets.

    MiCA Deadline Leaves Many Firms Without Authorization

    MiCA became fully applicable across Europe after introducing stablecoin rules in June 2024 and broader crypto regulations later that year. Existing providers were granted a transition period that expires on July 1, allowing time to obtain authorization from national regulators. Licensed firms can then operate throughout the European Economic Area, which includes the European Union, Norway, Iceland, and Liechtenstein.

    Meanwhile, the European Securities and Markets Authority (ESMA) has instructed unauthorized crypto firms to close their operations in an orderly manner once the transition period ends. The regulator also asked companies to safeguard customer assets during the process. Industry executives expect the new framework to reduce the number of active providers across the region.

    Erald Ghoos, CEO of OKX Europe, estimated that “80% of the crypto players won’t survive after MiCA.” He added that “It’s not only because of MiCA itself, it’s because of the whole width and heaviness of the European regulatory burden.” According to Ghoos, firms offering stablecoin services may also require Payment Institution or Electronic Money Institution licenses, adding further compliance requirements.

    Compliance Costs Create Challenges for Smaller Companies

    Industry participants say the financial burden extends beyond the minimum capital required for authorization. Patrick Gruhn, founder and CEO of Perpetuals.com Ltd, said firms need between €50,000 and €150,000 in regulatory capital depending on their license category. However, obtaining authorization can cost as much as €700,000 during the first year, followed by annual compliance expenses that may reach €250,000 for smaller firms.

    Gruhn also stated that legal fees alone can approach €100,000, while the authorization process may take between 12 and 24 months before companies can begin regulated operations. He noted that although many businesses could disappear, numerous pre-MiCA registrations belonged to shell entities with limited activity. According to Gruhn, many compliance jobs created under the new framework may also offset employment losses elsewhere.

    Several companies have reportedly explored acquisitions rather than completing the licensing process themselves. Ghoos said some firms approached OKX Europe after determining they could not meet the regulatory costs required under MiCA.

    Poland Reflects the Wider Licensing Challenge

    Poland presents one of the clearest examples of the transition’s effect. The country previously had around 2,000 registered VASPs, yet only one company has obtained a MiCA license. Legislative delays and regulatory hurdles slowed the licensing process, leaving many firms without authorization ahead of the deadline.

    Mateusz Kara, CEO of Morphic Financial Group, said “It will change the business landscape of crypto entities a lot.” He added, “As far as I know, we are the only ones that have a MiCA license right now.” Kara also stated that many firms could be forced to cease operations during the second half of the year.

    Meanwhile, legal experts expect enforcement to differ among European jurisdictions. John Salmon, partner at Hogan Lovells, said “None of us know what’s going to happen,” noting that some countries introduced legislation later than others. However, his colleague Lavan Thasarathakumar said “Any regulator, jurisdiction, or member states allowing firms to continue to operate under their existing national law would be deemed in breach of EU regulations.”

    BitGo Europe has also introduced a regulated custody option that allows firms to transfer customer wallets instead of pursuing their own MiCA authorization. CEO Mike Belshe described the transition as ‘a setback,’ adding that “European users will become the biggest victims of the end of this transitional period.”