Russia Tightens Grip on Crypto Trading through Licensed Intermediaries

Russia's government has taken a significant step towards regulating the country's cryptocurrency market. A package of draft bills has been approved, which would require domestic crypto trading to be channeled through licensed intermediaries.

The new framework aims to tighten state oversight while preserving limited access for non-qualified investors. According to the Ministry of Finance, transactions involving digital currency without regulated intermediaries are prohibited under the new regulatory framework.

Retail investors would face significant limits under the rules, including a purchase limit of up to 300,000 rubles ($3,700) per year through a single intermediary. To buy cryptocurrencies, retail investors must also pass a test and purchase only 'most liquid digital currencies' defined by the Bank of Russia.

Crypto operators would need to obtain licenses under the new framework, which includes amendments to certain Russian legislative acts and changes to the country's administrative offenses code. Banks and brokers would be allowed to participate in crypto operations, provided they comply with specific prudential requirements.