The Bank of Russia Includes Cryptocurrencies in the List of Financial Market Risks

The Bank of Russia has included cryptocurrencies in the list of risks for the financial market, noting that new regulations should reduce these risks. The draft of the Main Directions for the Development of the Financial Market for 2027-2029 states that the spread of "money surrogates," including digital currencies and stablecoins, poses a risk to the Russian financial market. The Central Bank emphasizes the possibility of using cryptocurrencies as an alternative to national currencies. The regulator also points to the risks of losing invested funds, the use of cryptocurrencies in illegal activities, and the growth of the shadow market segment due to differences in the regulation of digital assets in different countries. Anonymity and decentralization increase these risks and reduce the possibility of control. The report notes that "the decentralized and extraterritorial nature of the distribution and use of digital assets reduces the effectiveness of the regulatory restrictions and prohibitions established in relation to them." The Bank of Russia has announced the development of rules for the circulation of digital currencies, which should reduce the risks of using cryptocurrencies for criminal purposes and create conditions for legal use in cross-border operations and investments. As of September 1, the law "On Digital Currency and Digital Rights" came into force in Russia, which defines the rules for the circulation of digital currencies and allows qualified and unqualified investors to legally invest in crypto assets permitted in the Russian market.

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