The Bank of Russia has taken a cautious step toward embracing cryptocurrency by allowing financial institutions to offer crypto-linked investment products exclusively to qualified investors.
This landmark decision, announced on Wednesday, permits licensed firms to provide non-deliverable financial instruments, such as derivatives and securities, tied to cryptocurrency prices without transferring actual digital assets to clients.
The move reflects Russia’s effort to regulate the rapidly growing crypto market while maintaining strict oversight to mitigate risks. The central bank emphasized that only high-net-worth individuals meeting stringent financial criteria can access these products, reinforcing its long-standing opposition to retail crypto trading.
Strict Regulations for Crypto Investments
Under the new framework, banks offering crypto-linked products must implement robust risk controls, fully back investments with capital, and set individual exposure limits to manage volatility.
The Bank of Russia reported a 51% surge in crypto activity from Russian residents, with 7.3 trillion rubles ($91 billion) flowing through global exchanges in the last quarter of 2024 and the first three months of 2025.
This decision aligns with the bank’s plan to formalize a conservative regulatory approach later this year, addressing the price volatility of digital assets.
The central bank continues to warn against direct crypto purchases, maintaining a ban on using cryptocurrencies for domestic payments to protect financial stability.
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Experimental Crypto Sandbox and Sberbank’s Role
The Russian government is reviewing a proposal to establish a three-year Experimental Legal Regime (ELR), or “crypto sandbox,” allowing select investors to trade cryptocurrencies directly within a controlled environment.
The sandbox, proposed in March, targets “super-qualified investors” with over 100 million rubles ($1.25 million) in securities or deposits or an annual income exceeding 50 million rubles ($625,000). Russia's largest bank, Sberbank, is well-positioned to serve as a crucial liquidity provider and market maker for these regulated platforms.
Alexander Zozulya, head of Sberbank’s Global Markets Department, stated that the bank’s infrastructure is ready to support structured products, digital financial assets, and mutual funds mimicking Western-style crypto ETFs, offering exposure to Bitcoin and Ethereum without direct ownership.
The ELR’s launch, expected within six months, aims to bring crypto transactions out of the shadows, with amendments to the Civil and Tax Codes under discussion.
Did You Know?
Russia ranks among the top five countries globally for cryptocurrency adoption, with over 12% of its population engaging in crypto transactions, according to recent blockchain analytics.
Global Influence and Crypto in Trade
The Bank of Russia attributes part of the domestic crypto surge to increased global confidence in digital assets, spurred by U.S. President Donald Trump’s pro-Bitcoin stance.
Russian oil companies have increasingly adopted Bitcoin, Ethereum, and stablecoins like Tether for international trade, particularly with China and India, to convert yuan and rupees into rubles and bypass Western banking systems.
This crypto-based trade is growing, according to the International Energy Agency, although it still represents a small fraction of Russia’s $192 billion oil market.
Recent industry data highlights Russia’s high crypto adoption, ranking it among the top globally, with stablecoin transactions alone surpassing $200 billion in early 2025. The central bank’s cautious approach seeks to balance innovation with regulatory control amid ongoing geopolitical tensions and sanctions.
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