The use of digital currencies as a means of payment on the territory of the Russian Federation will continue to be prohibited. Under the proposed regulation, digital currencies are considered solely as an investment vehicle.

The bill defines the requirements for exchanges and exchangers (operators) that can carry out activities related to the organisation of the circulation of digital currencies. For this, a special register of operators will be created. 

The requirements relate to corporate governance, reporting, information storage, internal control and audit, risk management system and the amount of funds. The activities of such companies will be licensed and controlled by an authorised body determined by the Government. Foreign cryptocurrency exchanges will have to register in Russia to obtain a license.

The central bank said: "Industry representatives have raised the issue of allowing investment in crypto assets. According to the Bank of Russia, the provision by financial institutions of services related to operations with cryptoassets and derivatives on such assets does not meet the interests of investors in the financial market and carries great risks."

The Bank of Russia will be able to stipulate the characteristics of DFAs that may be acquired by non-qualified investors and the threshold of investment in such assets.

Further, all transactions with DFAs may be conducted only through digital financial asset exchange operators, which can be banks and exchanges, as well as other legal entities, provided they meet specific criteria.

The draft law also introduces the definition of digital currency that may not be a means of payment. Moreover, digital currency holdings, receipt and transfers will be deemed to be lawful only on their declaration.