The Bank of Russia is making it easier for individuals to obtain qualified investor status, allowing them access to expanded trading activities and potentially widening participation in cryptocurrency investment in Russia.
Under the new rules, individuals will be able to qualify by passing a test on financial and banking knowledge and securing either a Qualifin Certificate from the National Finance Association (NFA), a Moscow Exchange (MOEX) Investor Certificate, or other required documents.
“Holding any of these certificates is sufficient for a broker or a management company to recognise the individual as a qualified investor,” the bank declared.
The changes represent a significant shift from the previous system, under which the Bank of Russia recognised only international qualifications in fields including financial analysis, investment consulting, asset management and risk management.
The new process is due to take effect on 31 August. It is intended to make qualified investor status more accessible while requiring applicants to demonstrate a basic understanding of finance and banking before gaining access to a broader range of financial products.
Mikhail Mamuta, Deputy Governor of the Bank of Russia, said the test should make the process “more accessible and deliberate”, but rejected the idea that increasing the number of qualified investors was the main purpose of the reform.
“Our objective is to encourage people to gain knowledge rather than to simply increase the number of qualified investors on paper. The actual level of their knowledge is much more important than this number,” Mamuta said.
“We want people to understand the risks and learn how to manage complex instruments before they enter the market,” he concluded.
The move comes after recently introduced cryptocurrency regulations imposed limits on non-qualified investors. Under those rules, non-qualified investors are subject to an annual cap of 300,000 rubles ($3,800) on cryptocurrency purchases made through a single licensed intermediary.
Retail investors who hold qualified status have access to a limit 10 times higher, making the new route to qualification potentially important for people seeking to increase their permitted cryptocurrency trading volumes.
The Bank of Russia has said the restrictions are designed to protect investors who may not have sufficient experience or knowledge to understand the risks associated with complex financial instruments.
Governor Elvira Nabiullina defended the limits in July, highlighting the protections built into the legislation for non-qualified investors.
“Non-qualified investors have fewer opportunities because the government, through legislation, tries to protect them to avoid them embracing the risks that they don’t understand,” she assessed at the time.
The revised requirements are aimed at professional market participants and also specify that cryptocurrencies approved for trading must be included in the calculation. The bank’s new approach therefore links access to higher investment limits with evidence of financial knowledge, rather than relying solely on internationally recognised professional certifications.
While the changes could increase the number of individuals eligible for qualified investor status, Mamuta said the Bank of Russia’s priority was to improve investors’ understanding of financial risks and ensure they were better prepared before using complex market instruments.
