CBR Opens Applications for Crypto Exchanges and Depositories

The Central Bank of the Russian Federation has officially opened the application process for launching cryptocurrency exchanges and digital depositories. Starting October 5, regulations allowing companies to enter the regulated crypto market have come into force.

Market Participants

To obtain authorization for operations, organizations must undergo an admission procedure and be included in the CBR registry. The following entities have already announced their submission of applications:

• Sber has submitted an application for digital depository status.
• Atomize (from T-Technologies) is also vying for digital depository status.
• T-Invest Lab (from T-Technologies) plans to launch a cryptocurrency exchange.

Functional Separation

Digital depositories will be responsible for accounting and storing clients' cryptocurrencies. Cryptocurrency exchanges, in turn, carry out transactions for buying and selling cryptocurrencies for rubles and other currencies.

A separate regulatory standard applies to banks: their own risk from cryptocurrency operations must not exceed 1% of capital.

Competitors in the Market

Previously, VTB, Alfa-Bank, Sovcombank, Ozon Bank, PSB, and Gazprombank had announced plans to enter the regulated crypto market. However, no public announcements regarding application submissions from these entities have been made so far.