Russia’s central bank to allow investment funds acquire crypto derivatives early next year
Russia's central bank, the Central Bank of Russia (CBR), will authorize investment funds to buy cryptocurrency derivatives starting early next year. Currently, management companies are prohibited from investing in crypto-linked instruments, but regulatory changes are planned in Q1 2024 to lift this restriction. The announcement was made by Olga Shishlyannikova, confirming earlier plans from CBR to allow mutual investment funds to access crypto derivatives, aiming to create a level playing field for market participants. While Russia remains cautious on cryptocurrencies, its stance has softened recently, especially for cross-border payments, recognizing Bitcoin as a high-return asset. To date, crypto investments are mainly limited to highly qualified investors and operate within an experimental legal regime. By 2026, it plans to comprehensively regulate crypto investments, including crypto-linked products for banks and financial firms.
Layer-1
Russia to Allow Investment Funds to Buy Crypto Derivatives
Russia’s Central Bank (CBR) has confirmed plans to allow investment funds to acquire cryptocurrency derivatives starting early next year. Currently, only brokers are permitted to offer crypto-based products on the Russian market, as management companies face explicit prohibitions. This change indicates a significant shift in Russia's financial policies regarding cryptocurrencies.
Regulatory Changes and Timeline for Implementation
The CBR intends to lift the restrictions on capital management firms by making amendments to the current regulatory framework. According to Olga Shishlyannikova, the director of the CBR’s Investment Finance Intermediation Department, these changes are planned for the first quarter of 2024. She explained that the existing ban for mutual investment funds cannot simply be removed via a circular but requires changes to a regulatory act, reinforcing the seriousness of the reform.
Statements from Key Officials
Speaking at a financial industry forum in Yekaterinburg, Shishlyannikova stated: “Amendments to the regulation are required. We plan to do this in the first quarter of next year.” Her comments echo earlier statements made by her deputy, Valery Krasinsky, who revealed at a September forum that the regulator is working to “level the playing field” for funds by letting them offer crypto derivatives, similar to brokers. He also highlighted the need to address additional regulatory barriers, such as approving a list of eligible base assets for these instruments.
Russia's Gradual Shift Toward Crypto Integration
While the Bank of Russia remains one of the most conservative institutions regarding cryptocurrency in the nation’s economy, its stance has softened recently. The shift is partly driven by Russia’s use of cryptocurrencies for cross-border payments in response to Western financial sanctions. In May 2025, the CBR had already permitted financial firms to offer derivative instruments and securities linked to major cryptocurrencies, including Bitcoin (BTC) and Ethereum (ETH).
Limitations and Current State of Crypto Investments
Despite these developments, strict limitations remain. The derivative products cannot involve the actual delivery of the underlying assets and are restricted to “highly qualified” investors who must meet minimum income and asset thresholds. The offerings are also currently available solely within an “experimental legal regime”, with the CBR urging lawmakers to pass a comprehensive law for regulating crypto investments by 2026.
Future Plans for Commercial Banking and Crypto
In October, Deputy Governor Vladimir Chistyukhin announced the CBR’s plans to allow commercial banks to engage in cryptocurrency operations. This shift will come with specific requirements and stringent rules aimed at mitigating risks. These developments signify Russia’s cautious but growing openness to integrating cryptocurrencies into its financial landscape.