The Russian Central Bank proposes "Legalization of Crypto Trading"! Aiming to complete legislation by 2026

The Bank of Russia unveiled a “Cryptocurrency Market Regulation Proposal” on Tuesday, aiming to allow retail investors and professional investors to participate in cryptocurrency trading legally under strict risk controls. According to official statements, the proposed legal amendments have been submitted to the Russian government for review, with the goal of completing legislation by July 2026. Despite some easing in regulatory stance, the Bank of Russia still considers cryptocurrencies as high-risk instruments and emphasizes in its statement that cryptocurrencies are not issued or guaranteed by any jurisdiction, are highly volatile, and carry sanctions risks. The Bank of Russia reminds investors that before purchasing cryptocurrencies, they must clearly understand that any potential losses are their own responsibility, and establishing a regulatory framework does not equate to investment protection. Under the regulatory proposal, digital currencies and stablecoins will be classified as “monetary assets,” allowing legal buying, selling, and investment, but explicitly prohibiting their use as a payment tool within Russia. Regarding investment qualifications and limits, the Bank of Russia adopts a clear tiered system:

• Retail Investors: Can only invest in mainstream cryptocurrencies designated as “high liquidity” by law, and must pass a risk assessment; the annual investment limit per person through a single intermediary is 300,000 rubles (about $3,300).
• Professional Investors: Can invest in any cryptocurrencies except anonymous coins, with no trading amount limit, but must also pass a risk awareness test.

In practical terms, cryptocurrency trading can be conducted through existing financial infrastructure. Exchanges, brokerages, and trust (asset management) institutions holding current financial licenses can legally provide crypto asset services. As for crypto custody institutions and exchanges, the Bank of Russia will establish additional regulatory requirements to strengthen cybersecurity, asset segregation, and compliance responsibilities. Compared to past strict restrictions, the new regulation proposal relaxes cross-border transfers. In the future, Russian residents will be able to purchase cryptocurrencies using overseas accounts or transfer cryptocurrencies abroad through Russian intermediaries, but all related transactions must be reported to tax authorities in accordance with the law. The Bank of Russia states that the goal is to complete all necessary legislative amendments and establish a foundational legal framework by July 1, 2026; starting July 1, 2027, any institutions engaging in unlicensed cryptocurrency exchange, custody, or intermediary services will face legal liabilities.

The Bank of Russia has launched a pilot program: allowing “wealthy investors” to trade cryptocurrencies.