Bank of Russia drafts first regulations for domestic crypto market

The draft rules would let brokers use cryptocurrencies and digital rights as collateral in margin trades, set conditions for short selling and cap some crypto operations for non-qualified investors.

BTC

Summary

Bank of Russia has expanded its first draft regulations for the domestic crypto market by detailing how margin operations involving Bitcoin and other cryptocurrencies could work. The proposal would allow cryptocurrencies and digital rights to be used as collateral, extend brokers’ risk-calculation frameworks to include crypto assets, set conditions for short selling and impose limits on some crypto operations for non-qualified investors. The framework is expected to take effect 10 days after official publication, marking a more concrete step toward organized trading in digital currencies in Russia and offering market participants clearer rules for leveraged activity.

Terms & Concepts
  • margin operations: Trading arrangements that use borrowed funds or pledged collateral to increase market exposure.
  • short selling: A strategy that seeks to profit from a price decline by selling borrowed assets and buying them back later.
  • digital rights: Legally recognized digital claims or assets that can be used within regulated financial transactions.