Russia’s central bank has published a draft crypto framework that would legalize and regulate crypto trading for both retail and institutional investors — a policy shift slated for adoption in 2026 that reflects a softer stance on digital assets while keeping a cautious tone. Key points of the proposal - Legal status: The Bank of Russia would recognize digital currencies and stablecoins as monetary assets that can be bought and sold, but explicitly not used for domestic payments. - Consumer warnings: The central bank reiterated that crypto investments carry significant risks — including high volatility and exposure to sanctions — and that investors must accept the possibility of losing their funds. - Investor access and limits: Ordinary (nonqualified) investors could buy and sell crypto through regulated platforms, but would be capped at 300,000 rubles (about $3,300) per intermediary per year and would need to pass a risk‑awareness test. Qualified investors would face no volume cap but must pass a knowledge assessment. - Privacy coins: Tokens that obscure transaction details would remain banned. - Financial firms and custody: Services offered by existing licensed financial institutions — exchanges, brokers and asset managers — would gain legal footing if they comply with the rules. The proposal also outlines new requirements for custodians and wallet providers. - Cross-border holdings and taxes: Russian residents would be permitted to buy crypto abroad with foreign accounts and later move assets to licensed domestic platforms; such transfers would trigger mandatory tax reporting. This marks a reversal from the central bank’s earlier position. - Digital financial assets (DFAs): The draft supports wider use of Russian-issued DFAs, including circulation on public networks and potential access for foreign investors. Context and implications The proposal follows months of reporting that Russia is moving toward broader, regulated crypto access and comes as major domestic financial institutions signal interest in offering spot crypto trading under an approved framework. By recognizing crypto as tradable monetary assets while forbidding their use in domestic payments, the Bank of Russia appears to be balancing market development and integration of existing financial players with caution about monetary and regulatory risks. The draft is intended to be implemented in 2026; stakeholders and market participants will be watching how the rules — especially investor protections, custody standards and tax enforcement — are finalized. Read more AI-generated news on: undefined/news