Russia's Digital Depositories Require 50-250 Million Rubles in Capital

The Bank of Russia has published its first draft rules as part of the country's cryptocurrency regulatory framework, extending systems already used in Russia's securities markets to digital assets. These proposals would create 'digital depositories,' regulated companies that would record holdings of cryptocurrencies and other digital assets. The depositories would need between 50 million ($570,000) and 250 million rubles ($2.8 million) in capital, depending on the services they provide. Specifically, 'settlement depositories' would require 250 million rubles, while firms working with foreign custodians would need 100 million rubles ($1.1 million), and other digital depositories would require 50 million rubles ($570,000). These capital requirements would apply only to liquid assets that meet the central bank's credit-quality standards. The regulations would also cover operators of electronic platforms that settle transactions involving digital financial assets. The central bank will maintain registers of digital depositories, crypto exchange operators, and companies issuing digital financial assets. The regulations were drafted under a digital assets bill adopted by the State Duma on July 21 and approved by the Federation Council on July 24. The cryptocurrency framework is scheduled to come into full force by September. The central bank's drafts and announcements on digital asset rules follow four days after the European Union unveiled its 21st sanctions package targeting 14 crypto firms. Markets have repositioned since June, with Binance holding approximately 55% of user funds and 24% of spot trading, while net inflows were drawn in early July, whereas the tracked market saw outflows. CoinDesk is an award-winning media outlet covering the cryptocurrency industry, adhering to strict editorial policies ensuring integrity, editorial independence, and freedom from bias. CoinDesk is part of Bullish (NYSE:BLSH), an institutionally focused global digital asset platform providing market infrastructure and information services. Bullish owns and invests in digital asset businesses and digital assets, and CoinDesk employees, including journalists, may receive Bullish equity-based compensation.

Russia's regulations could set a new benchmark for global cryptocurrency oversight. The high capital requirements for digital depositories may enhance liquidity and reliability in digital assets. However, these measures could further limit Russia's position in the crypto market. Binance's growing market share and continued net inflows suggest that major crypto platforms may operate unaffected by regulations.