Russia's Central Bank Prepares Stricter Rules for Cryptocurrency Custodians

The Bank of Russia is set to introduce new regulations for digital depositories that will handle and account for cryptocurrency in the Russian market. The framework, which is expected to go live on September 1, 2026, requires potential custodians to meet strict capital requirements. For operations with foreign systems, the minimum capital will be 100 million rubles, while settlement depositories will need over 250 million rubles.

Depositaries will not only be responsible for storing assets but also maintaining client and account registers, assigning unique codes to owners, and monitoring transfers for suspicious activity. This will necessitate significant investments in security systems, backup sites, and data centers. According to experts, creating a depository could cost hundreds of millions of rubles, leading to market consolidation around a few large companies.

The new regulations may have an unintended consequence: slower operations and higher fees for traders. While they will gain the protection and control typical in traditional financial markets, they will lose some of the speed that decentralized crypto platforms are known for.