The Central Bank of Russia has formally approved the issuance and trading of financial instruments linked to cryptocurrency prices, though under strict restrictions. According to a press release dated May 28, the new regulations apply solely to qualified investors, and physically settled crypto products remain prohibited.

Russian financial institutions are now permitted to issue derivatives, digital financial assets (DFAs), and other instruments tied to crypto prices. However, investors will not gain ownership of the underlying cryptocurrencies — only cash-settled returns based on price movements.

The regulator emphasized a conservative risk approach. Credit institutions are required to fully collateralize these instruments with capital and implement individualized risk limits. These requirements are intended to mitigate crypto price volatility and reduce systemic risk. A formal regulatory framework is expected to be finalized within the next year.

Despite this partial opening, the Bank of Russia maintains its overall cautious stance on crypto assets. Direct investment in cryptocurrencies remains discouraged, with authorities advising the general public to refrain from participating.

This initiative is part of broader efforts to establish a legal framework for digital assets in Russia. Earlier this year, the central bank proposed a pilot program allowing limited crypto transactions for highly qualified investors. Eligibility criteria include holding at least 100 million rubles (approx. $1.1 million) in securities and deposits, or earning more than 50 million rubles (approx. $570,000) in the previous year.

If approved, the pilot will run for three years and could serve as a foundation for integrating crypto into Russia’s regulated financial ecosystem.

In parallel, the Ministry of Finance and the Central Bank are also preparing the launch of a state-backed cryptocurrency exchange. The platform, expected in the coming months, will operate under the country’s experimental legal regime for financial innovation and be accessible only to a limited group of pre-approved investors.

Finance Minister Anton Siluanov stated that the initiative aims to legalize crypto usage and bring it under regulatory oversight. Deputy Minister Ivan Chebeskov added that the platform may be built either on existing infrastructure or by newly licensed entities.

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