Russia outlines new digital depository rules ahead of fall crypto framework roll-out

The Bank of Russia published its first draft rules as part of the introduction of cryptocurrency regulations in the country, including capital requirements for companies that hold and record digital assets.

The proposals would extend systems already used in Russia’s securities markets, including exchange trading, custody, record-keeping and disclosure rules, to digital assets.

The framework would create “digital depositories,” regulated companies that would record holdings of cryptocurrencies and other digital assets. They would need between 50 million ($570,000) and 250 million rubles ($2.8 million) in capital, depending on the services they provide.

Settlement depositories would require 250 million rubles ($2.8 million) in capital The requirement falls to 100 million rubles ($1.1 million) for firms that control crypto addresses or hold assets with foreign custodians, and 50 million rubles ($570,000) for other digital depositories.

Assets counted toward those capital requirements must be liquid, while eligible financial assets must meet the central bank’s credit-quality standards. The requirements would also apply to operators of electronic platforms that settle transactions involving digital financial assets.

The central bank will maintain registers of digital depositories, crypto exchange operators and companies that issue digital financial assets.

The regulations were drafted under a digital assets bill adopted by the State Duma on July 21 and approved by the Federation Council on July 24. The cryptocurrency framework is scheduled to come into full force by September. The central bank’s proposals are not yet final and have been released for public assessment.

The central bank’s drafts and announcements on digital asset rules follows four days after the European Union (EU) unveiled its 21st sanction package targeting 14 crypto firms, including A7, a $120 billion stablecoin network.