Russia’s Central Bank has approved the trading of financial instruments tied to crypto prices for qualified individuals.

However, these instruments must be non-deliverable, meaning investors won’t be able to hold the digital assets; instead, they will only receive payouts based on price movements.

Strict Risk Controls

In a May 28 press release, the central bank confirmed that Russian financial institutions are now allowed to issue financial derivatives, digital financial assets (DFAs), and other securities pegged to cryptocurrencies. Nevertheless, access to these offerings is strictly limited to investors who meet certain legal criteria, with the general public remaining excluded.

The financial regulator has also adopted a conservative risk approach. Credit institutions must fully back such positions with capital and implement individual exposure limits. These measures are meant to reduce the impact of crypto price fluctuations and prevent broader financial risks, with plans of formalizing the requirements within the year.

Despite this update, the Bank of Russia is maintaining its broader opposition to cryptocurrencies and will continue to advise against direct investment in them.

Broader Efforts to Advance Crypto Regulation

This move follows similar efforts to create a legal framework for digital assets in Russia. The government is currently reviewing proposals from the monetary authority for a pilot program that would restrict crypto transactions to certain categories of investors. To qualify, participants must hold at least $1.1 million in securities and deposits or have earned over $570,000 in the previous year.

The pilot, introduced in March, is expected to run for three years if approved and could play a key role in shaping the future of digital asset use within Russia’s financial system.

Similarly, the Russian Finance Ministry and the national bank have begun laying the foundation for a government-run crypto exchange that is expected to launch in the coming months.

According to local media reports, Finance Minister Anton Siluanov revealed that the initiative would support the legalization of crypto use and bring digital transactions under regulatory oversight.

The exchange will operate within the country’s experimental legal framework for financial innovation and will be open only to a limited group of approved investors for conducting regulated crypto transactions.

Deputy Finance Minister Ivan Chebeskov also highlighted that the platform could be developed using existing financial infrastructure or by newly licensed entities.

Meanwhile, Russia continues to use cryptocurrency in oil trade with India and China. Last year, Siluanov confirmed that domestic businesses have been using digital assets to work around economic sanctions imposed by the United States and its allies after Moscow invaded Ukraine in February 2022.