OREANDA-NEWS  Since May 26, the Bank of Russia has been expanding the requirements for foreign digital rights (PPIs) entering the Russian market, a measure aimed at protecting investors from increased risks, the regulator said.

"The Bank of Russia has expanded the requirements for foreign digital rights (PPIs) entering the Russian market. The regulator's instruction is aimed at protecting investors from increased risks associated with the acquisition of such instruments," the regulator said in a statement.

"The instruction of the Bank of Russia establishes additional criteria for PPI. They should not be linked to securities issued by unfriendly issuers. In addition, such instruments should not certify the rights to receive cryptocurrencies or PPI that are not allowed to be circulated in Russia. In terms of issuing PPI, there should be no indication of a possible block on the part of both the issuers themselves and the payment agents or their supervisors," the Central Bank explains.

It is also necessary that at least one friendly country be on the list of states where it is possible to comply with PPI requirements, in addition, in case of disputes regarding digital instruments, they should not be considered in unfriendly jurisdictions, the regulator notes. In Russia, only legal entities that are qualified investors will be able to buy such PPI, the regulator adds.

The new instruction of the Bank of Russia comes into force on May 26, 2025, the report says.

Since August 2024, foreign PPI can be applied in Russia if they are similar in content to Russian digital financial assets (CFAs), for which the operator of the information system where CFAs are issued must evaluate key documents that describe the foreign asset and the rights of its owners for compliance with the requirements of Russian legislation, the Central Bank reminds.