Cryptocurrency market prospects: Bank of Russia’s proposals
The Bank of Russia has devised a concept of cryptocurrency regulation in the Russian market. Cryptoassets will be accessible to both qualified and non-qualified investors, but the rules for them will differ. The Bank of Russia has presented its proposals regarding legal amendments to the Government.
Nevertheless, the regulator continues to classify cryptoassets as a high-risk instrument as they have no identifiable issuer and are not guaranteed by any jurisdiction. Moreover, they are highly volatile and involve sanction risks. Making a decision on purchasing cryptoassets, investors need to be well aware that they might lose their funds.
According to the concept, digital currencies and stablecoins are classified as currency assets, may be purchased and sold, but may not be used to make payments inside Russia.
Non-qualified investors will be allowed to buy the most liquid cryptocurrencies, which will be subject to certain criteria stipulated by law, but only after successful testing and within the limit of ₽300,000 per year via one intermediary.
Qualified investors will have access to any cryptocurrencies, except for anonymous ones (whose smart contracts conceal information about token transfers to accounts), without any limits on transaction amounts, but also only after the test proving that they are well aware of the inherent risks.
Cryptocurrency transactions may be conducted through the existing infrastructure: exchanges, brokers, and trustees will be allowed to act based on their respective licences. The concept provides for separate requirements solely for specialised depositories and exchange offices that will deal with cryptocurrencies.
Furthermore, residents will be able to purchase cryptocurrencies abroad (using their foreign accounts) and transfer earlier bought cryptocurrency balances through Russian intermediaries abroad, but such transactions are to be reported to the tax authorities.
The new regulation will also affect the market of digital financial assets (DFAs). Transactions with DFAs and other Russian utility and hybrid digital rights will be permitted in open networks. Issuers will thus have the option of raising investment from abroad, while clients will be able to buy DFAs on terms that will be no worse than those set for cryptocurrency purchases.
The related legal framework is to be drafted before 1 July 2026, as provided for by the concept. It is planned that, from 1 July 2027, the legislation will introduce liability for intermediaries’ illicit operations in the cryptocurrency market, similar to that for illegal banking.