Russia’s Central Bank Proposes New Framework to Legalize and Regulate Cryptocurrency Trading

Russia’s central bank has unveiled a proposed regulatory framework that would legalize and oversee cryptocurrency trading for both individuals and institutions, marking a continued softening of its stance toward digital assets. While the proposal signals greater acceptance of crypto trading in Russia, regulators continue to warn investors about the significant risks involved, including volatility, sanctions exposure and the potential loss of funds.

In its official statement, the Bank of Russia emphasized that cryptocurrencies are not issued or guaranteed by any jurisdiction and therefore carry heightened financial and geopolitical risks. Investors are urged to fully understand that they assume responsibility for any losses when investing in crypto assets. Under the proposal, digital currencies and stablecoins would be recognized as monetary assets that can be bought and sold, but they would remain prohibited for use in domestic payments.

If adopted, the framework would allow ordinary Russian citizens to buy and sell cryptocurrencies through regulated platforms operated by licensed financial institutions. Nonqualified investors would be limited to purchasing up to 300,000 rubles (approximately $3,300) in crypto per intermediary each year, provided they pass a mandatory risk-awareness test. Qualified investors would face no trading volume caps but would still be required to demonstrate sufficient knowledge. Privacy-focused cryptocurrencies that obscure transaction data would remain banned.

The proposal grants legal status to crypto-related services offered by existing Russian exchanges, brokers and asset managers operating under current licenses. It also outlines plans to introduce new rules for digital asset custodians and wallet providers. Notably, the framework would allow Russian residents to purchase cryptocurrencies abroad using foreign accounts and later transfer them to licensed domestic platforms, subject to mandatory tax reporting. This represents a reversal of the central bank’s earlier restrictive approach.

The initiative follows months of reporting on Russia’s gradual move toward regulated crypto adoption, driven by widespread use and growing interest from major financial institutions seeking approval to offer spot crypto trading. The proposal also supports expanded use of Russian-issued digital financial assets, including circulation on public networks and potential access for foreign investors, reinforcing Russia’s evolving crypto regulatory landscape.