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Cryptoprowl / Russia’s State Duma on Friday passed the first reading of a landmark bill legalizing the use of digital assets for international trade settlements, a strategic pivot designed to bypass Western sanctions and the SWIFT global payment network.

The legislation creates a formal framework for Russian exporters and importers to settle contracts in cryptocurrency, potentially facilitating trade across an estimated $240 billion in volume currently hampered by banking restrictions. The bill represents the most significant shift in Russian monetary policy since the start of the conflict in Ukraine, moving away from the central bank’s long-standing opposition to digital currencies.

Under the proposed rules, the domestic use of cryptocurrency as a legal tender for goods and services remains strictly prohibited. Instead, the law focuses on creating an alternative financial rail for cross-border transactions. Eligibility for these settlements is restricted to established assets; only cryptocurrencies with a market capitalization exceeding 5 trillion rubles and a minimum five-year trading history are approved. Bitcoin (CRYPTO: $BTC ) and Ethereum (CRYPTO: $ETH ) are expected to be the primary vehicles for these international payments.

The bill also introduces a tiered system for domestic traders. Non-qualified retail investors will be capped at an annual purchase limit of 300,000 rubles, approximately $3,800, through any single licensed intermediary. Qualified institutional investors face no such volume restrictions.

Implementation is set for a phased rollout, with licensed trading platforms authorized to begin operations this July. A total ban on unlicensed platforms will follow exactly one year later.

Market analysts suggest the move may prompt a swift response from the U.S. Treasury’s Office of Foreign Assets Control (OFAC) as Washington seeks to prevent the emergence of a sanction-proof corridor. While the State Duma Committee on Protection of Competition has warned of potential over-regulation, the bill is widely expected to receive final approval from the Federation Council and President Vladimir Putin in the coming weeks.