The Bank of Russia’s Cryptocurrency Investment Framework

The Bank of Russia has proposed to the government a regulated framework for cryptocurrency investments under a three-year experimental legal regime.

Following directives from the Russian president, this initiative would allow a limited group of investors to buy and sell digital currencies.

Eligibility Criteria

Under the proposal, only “particularly qualified” investors—those with investments exceeding 100 million rubles in securities and deposits or an annual income above 50 million rubles—would be eligible.

Additionally, corporate-qualified investors and financial organizations that meet regulatory standards could also participate. The central bank will introduce specific risk-based requirements for financial institutions investing in cryptocurrency.

Goals of the Initiative

The main aim of this initiative is to enhance market transparency, establish service standards, and create more investment opportunities for experienced investors.

The Bank of Russia cautions that private cryptocurrencies are highly volatile and not supported by any jurisdiction, thus investors would face the risk of potential losses.

Despite this initiative, the central bank continues to reject cryptocurrency as a legitimate means of payment and proposes banning crypto transactions between residents outside the EPR, enforcing penalties for violations.

However, all qualified investors would be permitted to invest in derivatives, securities, and digital financial assets tied to crypto value, but not in direct delivery of crypto assets.

Russia has adopted a cautious approach towards digital assets, limiting their use for payments but exploring regulatory frameworks for investment and cross-border transactions.