Crypto Derivatives Now Open to Investors

Bank of Russia Allows Crypto-Linked Derivatives for Qualified Investors

• The Bank of Russia permits financial institutions to offer crypto-linked derivatives to qualified investors.
• These derivatives are “non-deliverable,” meaning they do not allow ownership of cryptocurrencies like Bitcoin or Ethereum.
• The policy shift follows international sanctions after the Ukraine invasion, reflecting an evolving approach to cryptocurrency.
• A conservative approach is advised, with full capital coverage and individual exposure limits.
• In March, a proposal was made for “particularly qualified” investors with assets over $1.1 million or incomes exceeding $550,000 to join a three-year crypto trial.

This move by the Bank of Russia marks a cautious step towards regulated crypto exposure by allowing non-deliverable crypto-linked derivatives under strict guidelines for qualified investors.