Russia Proposes Crypto Investment Rules with Retail Limits

The core of the Bank of Russia’s proposal is a clear distinction between retail and professional market participants, each subject to vastly different rules. For everyday Russians, gaining access to crypto markets would first require successfully completing a mandatory assessment to demonstrate a baseline understanding of digital asset risks. Once certified, these retail investors would face a stringent annual investment limit of 300,000 rubles when transacting through any single licensed intermediary. Their options would be further restricted to highly liquid cryptocurrencies, with assets like Bitcoin expected to be among the approved holdings.

In stark contrast, professional or ‘qualified’ investors would operate under considerably fewer constraints. While still required to pass the knowledge verification, these participants would face no annual spending caps and could access a broader spectrum of digital assets. However, the proposal draws a firm line for all investors: privacy-focused tokens, such as Monero or Zcash, would remain completely off-limits regardless of classification. This bifurcation aims to protect inexperienced retail participants from excessive risk while granting more freedom to sophisticated investors.

The regulatory framework maintains a rigid separation between the speculative and utilitarian functions of digital currencies. While Russians would be permitted to acquire and trade cryptocurrencies as speculative holdings, using them for commercial transactions—to purchase goods or services—would remain explicitly banned. The Bank of Russia’s rationale for this prohibition centers on three key concerns: the high volatility of crypto markets, the absence of any government guarantees, and potential complications arising from international sanctions.

In its justification, the central bank emphasized that stablecoins and other digital currencies would be classified strictly as monetary assets suitable for buying and selling, not as legitimate payment instruments. This distinction ensures that the Russian ruble retains its primacy within the domestic economy. The proposal formalizes a long-held stance from Russian authorities, who have consistently viewed crypto’s potential for circumventing financial controls with deep suspicion.

To maintain control and oversight, the proposal mandates that all cryptocurrency transactions under the new regime must flow through Russia’s existing licensed financial infrastructure. This means established exchanges, brokerage firms, and trustees currently authorized to operate would handle digital asset trades. The framework also introduces additional licensing requirements for specialized crypto services, including digital asset depositories and exchange platforms, creating a new layer of regulated intermediaries.

The framework also addresses the sensitive issue of cross-border capital movements. Investors would be permitted to transfer cryptocurrencies through foreign accounts, but such transactions would trigger a mandatory disclosure requirement to Russian tax authorities. This rule aims to balance the international nature of crypto markets with domestic obligations for transparency and tax compliance, preventing the system from being used for undisclosed capital flight.

The proposal has been formally submitted to the Russian government for legislative review. This development follows recent moves by major domestic financial institutions, like state-owned Sberbank, to expand cryptocurrency services, including the launch of a digital asset custody platform. These parallel actions suggest a growing, albeit carefully managed, institutional appetite for crypto exposure within the country’s financial ecosystem.