The Central Bank has taken on misselling: concealing cryptocurrency risks will become punishable.
The Bank of Russia has announced the launch of mandatory monitoring of misselling practices in the sale of digital currencies and financial instruments. The regulator intends to strictly crack down on situations where a financial institution sells one product under the guise of another or deliberately withholds key characteristics and risks of an asset. This statement is directly linked to the upcoming start of retail cryptocurrency sales through licensed intermediaries on September 1.
The essence of the new oversight
As I see this situation, the regulator is trying to close the most dangerous loophole in the new legislation. Testing and limits for unqualified investors are merely formal barriers at the entry point. They do not guarantee that the client will be honestly informed about what they are buying. That is why the Central Bank is taking the quality of buyer information at the sales stage under its direct control, not just the process of granting access to a transaction.
The deputy head of the regulator emphasized that supervision of such practices will be mandatory, especially at the initial stage of implementing the new rules. The key focus is on how well financial organizations will communicate to people not only the potential returns but also the real risks of cryptocurrencies. Importantly, the checks will cover not only the content of the information but also how the process of providing it is organized.
Context: the digital currency law
Let me remind you that in August, a law was signed that for the first time comprehensively regulates the circulation of digital currencies in Russia. The document defines the rules for the operation of crypto exchanges, depositories, and other market participants. Supervisory requirements will apply to a wide range of organizations—from exchange operators to management companies and clearing centers.
The industry is already raising objections to certain provisions. Experts note that the Central Bank's by-laws—testing criteria, registry procedures, and requirements for depositories—will determine the actual stringency of the rules even more than the text of the law itself. Particularly controversial is the article on who exactly is entitled to issue digital currency as a loan: miners and private holders of large portfolios have been left out of this list.
My conclusion: The Central Bank's initiative looks like a logical continuation of the course toward institutionalizing the market. However, the effectiveness of this oversight will depend on how quickly the regulator can detect violations in real time. Otherwise, we risk ending up in a situation where formal compliance with requirements matters more than honest dialogue with the client.