Russia is preparing to tighten oversight of foreign stablecoins through a new cryptocurrency regulation bill that would limit who can purchase the assets. The government’s final draft introduces a separate legal framework for stablecoins, separating them from traditional cryptocurrencies and restricting access for most retail investors.

The proposal comes in addition to a separate initiative from the Central Bank of Russia to place all stablecoin transactions under state supervision.

Final Bill Separates Stablecoins From Cryptocurrencies

The current version of Bill No. 1194918-8, titled On Digital Currencies and Digital Rights, changes how stablecoins are classified under Russian law.

Earlier drafts treated stablecoins the same as cryptocurrencies, allowing qualified retail investors to purchase them after completing the required testing. The updated proposal, however, identifies stablecoins as a separate category since they are issued by identifiable entities and include redemption obligations to token holders.

According to the draft, a stablecoin holder has the right to request that the issuer redeem the token at its face value in cash. The legislation states that this characteristic sets apart stablecoins from decentralized cryptocurrencies, which generally have no issuer or contractual obligation to investors.

New Categories Introduced for Foreign Digital Assets

The new bill outlines two additional legal concepts for foreign digital financial products. The first category covers foreign digital instruments, defined as rights issued under foreign law through foreign information systems, including tokenized assets.

The second introduces non-deliverable foreign digital instruments that certify monetary claims and enable financial settlements without transferring the underlying asset.

Under the proposed framework, only professional or qualified investors would be allowed to purchase foreign digital instruments. Retail investors would instead be limited to products specifically approved and listed by the Bank of Russia.

Central Bank Proposes State Supervision of Stablecoin Transactions

The legislative changes follow separate proposals released by the Central Bank of Russia at the end of June outlining how stablecoins could operate under regulatory oversight.

The regulator proposed that all stablecoin transactions be conducted under state supervision through licensed exchanges or authorized cryptocurrency exchange offices. Under the proposal, operators of information systems would ease transactions involving Russian-issued digital tokens, while licensed crypto exchangers would handle transactions involving foreign stablecoins.

Central Bank Governor Elvira Nabiullina also stated that the regulator remains concerned about foreign stablecoins because their issuers have the ability to freeze assets held in users’ wallets.

Related: Russia Moves to Monitor Every Crypto Transaction Above 60,000 Rubles