The Bank of Russia has announced the availability of crypto-linked financial instruments for qualified investors. This article discusses the requirements and implications of this decision.
Offering Crypto-Linked Instruments
In an official release published on May 28, the Bank of Russia stated that financial institutions will be allowed to offer qualified investors the following instruments:
* Financial derivatives * Securities * Digital financial assets with yields linked to crypto prices
A key condition for these offerings is that such instruments must be non-deliverable.
Conservative Risk Approach
The Bank of Russia has also noted that credit institutions are advised to apply a "conservative approach" in risk assessment associated with these products, including:
* Providing full coverage with capital * Setting individual limits on these instruments
The Bank plans to formalize this approach to the regulation of credit institutions' risks associated with the volatility of digital assets by 2025.
Test Regime for Crypto Transactions
According to the same press release, the Russian government is considering the Bank of Russia's proposals for launching a test regime that would allow only certain categories of investors to conduct crypto transactions. The Bank announced this new experimental legal regime to begin in March 2025.
The Bank of Russia continues to warn financial institutions and their clients about the risks involved in crypto investments, which becomes a significant aspect in light of the rising crypto adoption in the country.
