Russia is accelerating the implementation of digital asset regulations. The Central Bank of Russia's latest draft rules propose extending existing securities market requirements for trading, custody, registration, and information disclosure to the cryptocurrency and other digital asset sectors, preparing for a new framework planned for full implementation around September.
Digital escrow services will be subject to regulation.
At the heart of the draft is the establishment of regulated "digital custodians." These institutions would be responsible for recording holdings of cryptocurrencies and other digital assets and incorporating them into an official registration system. The Central Bank of Russia also plans to create a directory of digital custodians, cryptocurrency trading operators, and issuers of digital financial assets.
Capital threshold is divided into three levels
According to the draft, different business operations will have different capital requirements.
- The minimum capital requirement for a settlement custodian institution is 250 million rubles.
- Institutions that control encrypted addresses or hold assets through overseas custodians must have a minimum capital of 100 million rubles.
- Other digital escrow institutions have a minimum capital requirement of 50 million rubles.
According to the conversion in the text, the above amounts range from approximately US$570,000 to US$2.8 million. Assets included in the capital requirements must be liquid, and eligible financial assets must also meet the credit quality standards set by the Central Bank of Russia.
Electronic platforms are also subject to regulation.
In addition to custodian institutions, operators of electronic platforms involved in the trading and settlement of digital financial assets will also be subject to relevant capital and compliance requirements. This means that Russia intends to transplant the entire institutional framework of the traditional securities market to the digital asset market, rather than just regulating the trading process separately.
The draft regulations focus on key regulatory areas including transaction execution, asset custody, position recording, and information disclosure. If implemented, these rules will significantly raise the entry barriers for Russian digital asset service providers.
The new law has been passed, and the draft is still open for public comment.
This draft law is based on Russia's recently passed digital asset law. The law was passed by the State Duma on July 21 and approved by the Federation Council on July 24. Under the current arrangement, Russia's cryptocurrency regulatory framework will fully come into effect around September.
Currently, the Central Bank of Russia has released a draft for public comment, which has not yet been finalized. The timing of the draft's release coincides with the EU's announcement of a new round of sanctions against Russia. According to reports, the EU previously announced its 21st round of sanctions, targeting several cryptocurrency companies with ties to Russia.
Overall, Russia is incorporating the digital asset market into a more comprehensive licensed regulatory system, prioritizing the improvement of basic systems such as custody, settlement, and registration.
