Russia's central bank will allow cryptocurrency trading via exchanges from Nov. 22, local time.
Bitcoin Magazine reported on Nov. 11 that the Bank of Russia published an order revising exchange operating rules to include the change. The order completed registration with the Justice Ministry on Nov. 3, and will take effect on Nov. 22, 10 days after publication.
Exchanges must register brokers, trustees and central counterparties participating in cryptocurrency trading, and separately manage order and execution records. They are also required to check trading activity, calculate the current price, volume-weighted average price (VWAP), market price and closing price, and report trading status to the central bank.
A separate order set the assets and limits that retail investors can buy. Under the order published on Nov. 6 and taking effect on Nov. 17, retail investors can buy bitcoin, ethereum and tether (USDT). Exchanges can also list those assets as trading products for retail investors starting the same day.
Non-qualified investors can buy through a broker, trustee or licensed firm on an exchange or over the counter. The annual purchase limit per intermediary is 300,000 roubles (about 4.85 million won). Qualified investors can buy all cryptocurrencies without limits.
Both investor groups must take a knowledge test and receive a risk disclosure before trading. Retail investors are limited to buying highly liquid assets that meet legal standards such as market capitalisation, average daily trading volume and at least five years of price history on overseas exchanges.
Russia's largest exchange, the Moscow Exchange, said on Nov. 2 it plans to offer bitcoin, ethereum and USDT trading from Dec. 1. It will run an initial pilot programme, with trades executed on its existing stock market system and the National Clearing Centre (NCC) handling settlement. Clients can choose same-day or next-day settlement.
The Moscow Exchange must still agree detailed rules with the central bank before trading begins. Boris Blokhin (보리스 블로힌), a senior managing director at the Moscow Exchange, previously said in early October that trading could begin without additional permits and that it planned to use a digital depository institution as its settlement partner. The latest notice confirmed that prior agreement on trading rules is required regardless of whether separate permits are needed.
The St. Petersburg-based SPB Exchange also plans to begin cryptocurrency trading by year-end. It is also building its own digital depository institution for settlement.
The basis for the regulatory overhaul is Federal Law 282-FZ. Key provisions took effect from Sept. 1. The law recognises cryptocurrency as property and defines exchanges, brokers, administrators, depository institutions and money changers as entities subject to licensing. It also established a supervisory framework for cross-border transactions, but still bans use as a means of payment for goods and services within Russia.
Attention is expected to focus on when each exchange actually starts trading. Another key issue is how much the annual 300,000-rouble purchase cap for non-qualified investors draws demand for overseas exchanges into the regulated market.
