TL;DR
- The Central Bank of Russia lifts restrictions, allowing crypto investment in Russia through mutual funds with a 10% limit.
- The measure is part of a gradual softening of Russia’s regulatory stance towards crypto assets.
- Comprehensive legislation is expected in 2026, and the market responds positively, though with caution due to risk.
The regulatory stance of the Central Bank of Russia has drastically changed. It has now decided to lift restrictions on crypto investment in Russia through mutual funds. This new position is part of a series of initiatives aimed at giving qualified investors wider access to digital assets and their derivatives, representing an advancement in the integration of digital currencies into the nation’s financial system.
The new rules proposed by the entity were made public last Tuesday. According to these regulations, investments in financial instruments linked to the value of cryptocurrencies will soon be possible through mutual funds, although their participation in the portfolios of these funds will be limited to a maximum of 10%.
The proposal also expands the list of non-exchange-traded securities in which retail mutual funds will be allowed to invest. The bank has opened a period for comments and suggestions until December 9, indicating an active discussion with market participants.
The business daily Kommersant highlighted that this most significant amendment envisages expanding the range of assets to include derivative instruments tracking the prices of digital currencies. “The legalization of cryptocurrency as a financial instrument, albeit in the form of derivatives, has undergone a difficult transition this year,” the newspaper noted, recalling the path from prohibition to the relaxation of requirements.
Comprehensive Regulation on the Horizon for Crypto Investment in Russia
The Bank of Russia, which has historically been a strong opponent of cryptocurrency legalization, has been gradually softening its stance in recent months. In March, it proposed establishing an “experimental legal regime” (ELR) for transactions and crypto investment in Russia, and in May, it authorized the offering of digital asset derivatives for a category of “highly qualified” investors.
Now, Russian authorities are discussing admitting other investors to the market. Statements from CBR officials in October and November revealed that the regulator plans to allow commercial banks to work with cryptocurrencies and mutual funds to invest in their derivatives. Furthermore, the central bank expects lawmakers to adopt new legislation comprehensively regulating crypto investments in 2026.
This new regulation could make the current ELR redundant, according to CBR Governor Elvira Nabiullina. The CBR also seeks to allow financial firms to offer products directly linked to cryptocurrencies, instead of relying on foreign funds and indices.
So far, the reaction from the financial sector is positive. Artem Mayorov, asset management director at Ingosstrakh Investments, noted that crypto-based instruments offered through mutual funds could be of interest to Russian investors seeking exposure to global assets without bearing infrastructure risks. Dmitry Tselishchev of Rikom Trust added that lifting restrictions for domestic funds will bring liquidity back to the Russian market.
However, analysts do not expect great immediate demand, given the recent declines in the crypto market and the high risk associated with this asset class. Bitcoin (BTC) and Ethereum (ETH) appear to be the most promising derivatives, as futures on foreign exchange-traded funds (ETFs) tracking these two leading cryptocurrencies by market cap are already traded on Russian exchanges.
