Russia Classifies Crypto as Major Risk, Caps Retail Investor Trading

The Bank of Russia has identified cryptocurrencies and stablecoins as major financial market risks in its latest draft policy document. The central bank expressed concern that private digital currencies could undermine the Russian ruble and erode monetary sovereignty.

Officials warned that investments in decentralized digital assets carry a high risk of total loss, citing an absence of legally accountable entities or collateral backing.

The Bank of Russia is urging tight enforcement measures to address these vulnerabilities, including criminal liability for unlicensed platforms or exchanges facilitating digital currency circulation and strict administrative fines for compliant participants violating established trading rules.

Russia has moved to formalize its cryptocurrency industry by opening regulated trading nationwide with a cap on retail investors at about $3,700 per year through licensed intermediaries.