Russia Warns Crypto Investors May Bear Losses to Foreign Issuer Actions

Russia's Deputy Finance Minister Ivan Chebeskov warned that crypto investors may bear losses if foreign issuers block their assets for reasons beyond the control of Russian digital depositories.

The warning comes as Russia continues to develop its regulated crypto market, with officials estimating around $44 billion in crypto holdings among Russian users. About 20 million Russians use cryptocurrencies, and their combined holdings are estimated at around 3.7 trillion rubles.

Chebeskov said a Russian digital depository would be responsible for problems within its own custody, accounting or transfer operations, but would not automatically compensate investors for restrictions imposed by a foreign issuer.

The issue is significant given the size of Russia's crypto market. The government is working on secondary rules needed to fully operate the market and has established a framework for licensed exchanges, brokers, and digital depositories.