Parameters for foreign digital rights to enter Russian market determined
The Bank of Russia has expanded the requirements for foreign digital rights (FDRs) entering the Russian market. The regulator’s ordinance is aimed at protecting investors from elevated risks associated with purchasing these instruments.
From August 2024, FDRs may be traded in Russia if their scope is equivalent to that of Russian digital financial assets (DFAs). For this purpose, an operator of the information system where DFAs are issued shall assess the key documents describing a foreign asset and the rights of its owners for compliance with Russian laws.
The Bank of Russia’s ordinance establishes additional criteria for FDRs. Namely, they shall not be related to securities of issuers from unfriendly countries. Furthermore, these instruments shall not certify the rights to receive cryptocurrency or FDRs that are not allowed to be traded in Russia. The terms of an FDR issue shall not include any indications to their possible freezing either by issuers themselves or by payment agents or their controlling persons.
In addition, the list of countries where obligations certified by FDRs can be fulfilled shall include at least one friendly state. Moreover, if disputes relating to digital instruments arise, they shall not be considered in unfriendly jurisdictions.
In Russia, only legal entities with the status of a qualified investor will be able to purchase such FDRs.
The regulator’s ordinance comes into force on 26 May 2025.