The Central Bank of Russia plans to open up investment in Crypto Assets, distinguishing between retail investors and professional levels.

The Central Bank of Russia submitted a draft concept for the regulation of the crypto asset market to the government, considering abandoning the definition that limits access to crypto assets to only accredited investors. The new regulations adopt a dual-track design, allowing non-accredited investors to purchase high liquidity crypto assets worth up to 300,000 rubles (approximately 3,800 USD) per year through intermediaries after passing a test, while accredited investors can invest without limit. Relevant legislation is expected to be completed by July 2026, with legal responsibilities imposed on illegal intermediaries starting from July 2027.

Russian Central Bank Policy Breakthrough: Easing Crypto Assets Investment Under Western Sanctions

(Source: Central Bank of Russia)

The recent policy shift by the Central Bank of Russia is not a sudden whim, but a strategic adjustment in response to Western financial sanctions. Since the outbreak of the Ukraine conflict in 2022, Russia has faced unprecedented financial blockades, with the SWIFT system cut off, foreign exchange reserves frozen, and cross-border payment channels blocked. In this extreme situation, Crypto Assets have become an important option for Russia to break through the blockade as a decentralized value transfer tool.

The statement by Vladimir Chistyukhin, the first deputy governor of the Central Bank, was very frank: “Especially in the current context of restricted overseas payments,” this sentence directly points out the core motivation for policy adjustment. After the traditional financial system channels were blocked, Russian enterprises faced enormous difficulties in conducting international trade. Although countries like China and India maintain trade relations with Russia, they still face secondary sanction risks when settling through traditional banking systems. Crypto Assets provide an alternative solution to bypass the SWIFT system.

However, the Central Bank of Russia views Crypto Assets as high-risk instruments even as it opens up to investments in them. The draft clearly states that Crypto Assets are not issued or guaranteed by any jurisdiction and face higher volatility and sanction risks. Investors should understand the risks of potential capital loss when deciding to invest in Crypto Assets. This cautious attitude reflects the Central Bank's balance between financial innovation and risk control.

According to regulatory concepts, digital currencies and stablecoins are regarded as monetary assets that can be bought and sold, but cannot be used for domestic payments. This restriction is crucial, demonstrating that although the Central Bank of Russia is open to investments in Crypto Assets, it absolutely does not allow them to challenge the ruble's status as legal tender. Crypto Assets are positioned as tools for foreign trade and investment assets, rather than domestic circulating currencies.

Explanation of the Dual-Track Investor Classification System

The dual-track system designed by the Central Bank of Russia is the core innovation of this regulatory framework. Both accredited investors and non-accredited investors can purchase Crypto Assets, but the two categories of investors will be subject to entirely different rules. This tiered management is innovative in the global regulation of Crypto Assets.

Non-accredited investors are defined as ordinary retail investors who will be able to purchase the most liquid crypto assets, with the relevant standards to be established in subsequent legislation. However, three prerequisite conditions must be met: First, they must pass a risk awareness test to ensure understanding of the potential losses of crypto asset investments; second, the annual purchase limit through a single intermediary institution must not exceed 300,000 rubles (approximately 3,800 USD); third, they can only purchase high liquidity coins, which means it may be limited to mainstream crypto assets like Bitcoin and Ethereum.

The annual limit of 300,000 rubles is designed with considerable thought. Based on an average monthly salary of about 60,000 rubles in Russia in 2025, this amounts to 5 months' wages, which is a considerable sum for ordinary investors, yet not so high as to cause catastrophic financial losses for families. The limitation on a single intermediary is to prevent investors from circumventing the limits by using multiple platforms and to facilitate regulatory agencies in tracking the flow of funds.

Accredited investors have greater freedom. They can purchase any Crypto Assets other than anonymous Crypto Assets, with no limits on trading volume, provided they pass stricter risk assessments. Anonymous Crypto Assets are explicitly excluded, as the smart contracts of such coins conceal information about the transfer of tokens to the recipient, which conflicts with Russia's anti-money laundering and counter-terrorism financing requirements.

Core Points of New Regulations on Cryptocurrency Investments by the Russian Central Bank

Access Conditions for Non-accredited Investors (Retail Investors)

· Annual investment limit: 300,000 rubles (approximately 3,800 USD)

· Must be purchased through a single licensed intermediary.

· Limited to high Liquidity Crypto Assets (expected to be major coins such as Bitcoin, Ethereum, etc.)

· Must pass the risk awareness test

Accredited Investors (Professional Level) Admission Requirements

· Investment amount is not limited

· You can purchase any Crypto Assets except for anonymous coins.

· Need to pass a stricter risk assessment test

· Can be traded through multiple licensed intermediaries.

Cross-Border Transaction and Reporting Rules

· Allow purchasing Crypto Assets through foreign accounts

· Assets can be transferred abroad through Russian intermediaries.

All cross-border transactions must be reported to the tax authorities.

Regulatory Infrastructure and Enforcement Timeline

The Central Bank of Russia has demonstrated a pragmatic attitude in the design of its regulatory framework. Cryptocurrency trading will be conducted through existing infrastructure, allowing exchanges, brokers, and custodians to operate under their current licenses. This means that there is no need to build a new regulatory system from scratch, but rather to integrate cryptocurrency businesses into the established financial regulatory framework. Only custodians and exchanges that specialize in cryptocurrency trading will have separate requirements.

This design significantly reduces regulatory costs and enforcement difficulties. Russia's existing stock exchanges, banks, and financial intermediaries already have well-established KYC (Know Your Customer) and AML (Anti-Money Laundering) systems, and incorporating Crypto Assets businesses into these systems can quickly establish an effective regulatory network.

Residents can also purchase Crypto Assets abroad, pay through foreign accounts, and transfer previously purchased Crypto Assets overseas via Russian intermediaries, but they need to report such transactions to the tax authorities. This provision shows that Russia does not intend to completely close off the domestic Crypto Assets market, but rather to monitor the flow of funds through a reporting mechanism.

The new regulations will also affect the Digital Financial Assets (DFA) market. DFAs and other Russian digital rights (utility and hybrid) will circulate on open networks. This will allow issuers to freely attract overseas investment, and customers will be able to purchase DFAs under conditions no less favorable than those for Crypto Assets. This arrangement shows that Russia is establishing a complete digital asset ecosystem that includes Crypto Assets and tokenized securities.

The legislative timeline shows Russia's determination to advance this reform. The plan requires the establishment of a complete legislative framework by July 1, 2026, and aims to hold intermediary institutions in the Crypto Assets market accountable for illegal activities starting from July 1, 2027, similar to the accountability for illegal banking activities. This means that by mid-2027, Russia will have a mature regulatory system for Crypto Assets.