On Wednesday, the Bank of Russia authorized regulated financial institutions to offer derivative instruments and digital financial assets linked to cryptocurrencies. This move allows qualified investors to access crypto-linked financial products under stringent requirements. These offerings cannot be settled in actual crypto assets.
The crypto derivatives must be non-deliverable and strictly limited to qualified investors. Financial institutions must fully collateralize the instruments with capital and implement exposure limits. The central bank reiterated warnings against direct crypto investment due to price volatility and potential illicit use.
Formal regulatory frameworks are expected over the coming year, including risk management procedures and investor protection mechanisms. The Russian government is also evaluating a limited pilot program for specific investor categories to engage in digital currency transactions within a supervised framework. Additional details are expected as regulatory discussions progress into 2025.
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