Russia’s Central Bank Grants NAUFOR Self-Regulatory Status for Cryptocurrency Oversight

Russia’s Central Bank Grants SRO Status to NAUFOR, Regulating Cryptocurrency Landscape

October 30, 2023 – Moscow – In a significant move for the burgeoning cryptocurrency sector, Russia’s central bank has officially designated the National Association of Securities Market Participants (NAUFOR) as a self-regulatory organization (SRO). This decision, dated October 29, empowers the 30-year-old trade body to oversee cryptocurrency exchanges and digital depositories under the country’s newly established licensing framework.

This landmark decision marks the first time a Russian SRO has been tasked with developing industry standards and ensuring compliance for digital-asset platforms. Under the recently enacted law “On Digital Currency and Digital Rights,” which took effect in September, all licensed exchanges and depositories are required to join an SRO within 90 days of their registration.

Currently, the Bank of Russia’s register includes 23 licensed crypto exchanges and eight digital depositories, with notable names such as VTB, Sberbank, and T-Technologies among the approved entities. These organizations now face a ticking clock to secure their SRO membership.

Founded in 1996, NAUFOR boasts a membership of 725, primarily drawn from the traditional securities sector, including brokers, dealers, and fund managers. The association has expressed its commitment to drafting standards for the digital-asset market and collaborating with the central bank on potential regulatory changes.

The new regulatory structure aligns digital assets with the existing securities market framework, placing day-to-day oversight in the hands of an industry body while the central bank retains ultimate licensing authority. Notably, the law prohibits the use of cryptocurrencies like Bitcoin as a general means of payment within Russia, directing domestic transactions through licensed venues.

Retail access to digital assets remains limited, with non-qualified investors allowed to purchase up to 300,000 rubles (approximately $3,800) annually through a single intermediary. Qualified investors, however, enjoy higher limits and broader access. Depositories are tasked with recording client holdings and may restrict transfers to personal wallets under certain conditions. Additionally, the law introduces a state-supervised mechanism for cross-border crypto transactions, aimed at helping Russia navigate Western sanctions.

Major financial institutions are rapidly adapting to the new regulatory environment. The Moscow Exchange is currently piloting crypto trading with professional participants and plans to launch full trading by December, leveraging its existing infrastructure and a partner depository. Sberbank has also received approval to provide custody services for Bitcoin and other cryptocurrencies. President Vladimir Putin has acknowledged the challenges of banning Bitcoin, recognizing its inherent resilience.

However, the SRO designation arrives amid a broader enforcement initiative in Moscow. Recently, the Ministry of Internal Affairs announced the dismantling of five unnamed crypto exchanges and a darknet drug marketplace, identifying over 185,000 exchange transactions during the investigation. Five suspected forum moderators have been detained since August 2025, facing charges of organizing a criminal community. In a separate incident, the Federal Security Service apprehended 20 employees of exchanges operating in the Moscow City business district.

Smaller platforms are also facing stricter operational regulations. The central bank has clarified that licensed exchanges must settle client transactions immediately upon execution, leaving no room for deferred fulfillment. Industry analysts suggest that only larger players will be able to meet these stringent requirements, as many smaller exchanges lack the necessary infrastructure to facilitate such rapid transactions.

The cumulative effect of these developments is a legal but constricted market. While licensed venues are poised to attract institutional and qualified-investor capital, platforms unable to establish connections with banks and depositories may find themselves excluded from the official register. The central bank anticipates that gray-market operators will be phased out by the end of the year.

As Russia navigates this complex regulatory landscape, the future of its cryptocurrency market remains uncertain, yet the establishment of NAUFOR as an SRO marks a pivotal step toward a more structured and compliant digital-asset environment.