Russia’s central bank unveiled a proposed framework that would legalize and regulate cryptocurrency trading for both individuals and institutions, continuing its softening stance toward cryptocurrencies. However, he goes on to warn that investing in cryptocurrencies carries risks, including potential losses.
“They are not issued or guaranteed by any jurisdiction and are subject to increased volatility and sanctions risks,” the central bank’s press release said. “When deciding to invest in crypto assets, investors should understand that they assume the risk of a possible loss of their funds.”
The central bank also said that “digital currencies and stablecoins are recognized as monetary assets; they can be bought and sold, but cannot be used for internal payments.”
According to the proposal, “digital currencies and stablecoins are recognized as monetary assets; they can be bought and sold, but cannot be used for domestic payments.”
The proposal follows months of reports showing Russia moving toward broader access to cryptocurrencies under regulated conditions. Officials had previously acknowledged the widespread use of cryptocurrencies and weighed the involvement of banks. The change also comes amid growing signs that major Russian financial institutions are planning or seeking approval to offer cryptocurrency spot trading under the new framework.
Under the proposal, ordinary Russian citizens would be able to buy and sell cryptocurrencies through regulated platforms. Unqualified investors could buy up to 300,000 rubles (about $3,300) worth of cryptocurrency per broker each year, as long as they pass a risk awareness test. Qualified investors could trade without volume limits, but would also face a knowledge test. Privacy-focused cryptocurrencies that hide transaction data would remain banned.
The framework grants legal status to crypto services offered by existing financial companies in Russia, including exchanges, brokers and asset managers, if they operate under existing licenses. It also paves the way for new rules governing digital asset custodians and wallet providers.
The proposal would also allow Russian residents to purchase cryptocurrency abroad using foreign accounts and then transfer those holdings to authorized domestic platforms, with mandatory tax reporting requirements, a reversal of the Bank of Russia’s previous stance. It also supports broader use of digital financial assets (DFA) issued in Russia, including their circulation on public networks and possible access for foreign investors.
