The Bank of Russia has announced new requirements for foreign digital rights (FDRs) entering the Russian market. This measure aims to protect investors from potential risks associated with these financial instruments.
Starting in August 2024, FDRs can be traded in Russia if their scope matches that of Russian digital financial assets (DFAs). Operators of information systems where DFAs are issued will need to evaluate key documents describing a foreign asset and the rights of its owners to ensure compliance with Russian laws.
The ordinance specifies that FDRs must not be linked to securities from unfriendly countries. They also cannot certify rights to receive cryptocurrency or FDRs not permitted for trading in Russia. Additionally, the terms should not indicate any potential freezing by issuers or payment agents.
Countries where obligations certified by FDRs can be fulfilled must include at least one friendly state. Disputes related to these digital instruments should not be resolved in unfriendly jurisdictions.
In Russia, only legal entities recognized as qualified investors will have the ability to purchase such FDRs. The ordinance is set to take effect on May 26, 2025.
