The Central Bank of Russia releases a conceptual plan for cryptocurrency market regulation

The Bank of Russia has developed and submitted a regulatory framework for the Russian cryptocurrency market to the government. The proposal suggests allowing digital asset operations through licensed financial intermediaries and introduces new rules for investors.

The Bank of Russia recommends establishing financial and foreign exchange control mechanisms for transactions involving digital currencies and stablecoins. Under this framework, digital currencies and stablecoins can be bought and sold but cannot be used as a means of payment within the Russian Federation. This approach aims to create a transparent and controllable legal environment for cryptocurrency circulation, protect investor interests, and reduce related risks caused by high volatility and lack of state guarantees.

Investor Entry Conditions

Non-qualified investors (individuals lacking sufficient experience) can only trade the most liquid cryptocurrencies and must meet the following conditions:

• Pass a mandatory risk awareness test;
• The annual trading volume through a single licensed intermediary must not exceed 300,000 rubles.

Qualified investors can participate in a broader range of crypto asset transactions, excluding anonymous projects. There is no upper limit on trading volume for such investors, but they must also complete the risk awareness test.

Licensed Intermediaries and Market Infrastructure

Cryptocurrency trading is planned to be conducted through exchanges, brokers, and trust managers that are already operating in the market and hold relevant licenses. No specific licenses are currently being considered for such intermediaries. Meanwhile, the Bank of Russia plans to set separate requirements for infrastructure supporting the circulation of crypto assets, including custody and trading services.

Cross-Border Transactions and Taxation

Residents can use funds from overseas accounts to purchase cryptocurrencies abroad or transfer previously acquired crypto assets abroad through Russian intermediaries. All such transactions must be reported to the tax authorities.

Legislative Timeline and Legal Responsibilities

The plan is to complete relevant legal amendments by July 1, 2026. Starting from July 1, 2027, legal liability will be introduced for illegal intermediary activities in the cryptocurrency market, similar to penalties for illegal banking operations.

Significance

The Bank of Russia emphasizes that cryptocurrencies remain high-risk financial instruments, neither issued by the state nor free from significant price volatility. Therefore, investors participating in cryptocurrency trading through licensed intermediaries must fully understand the associated risks and pass the relevant tests, which is a mandatory requirement.