Digital financial assets and their operators

All information system operators are required to comply with information protection requirements, including the protection of personal data of their clients. Personal data is processed only with the client’s consent.

In accordance with the legal requirements for DFAs, the information system operator is obliged to provide a mechanism for restoring user access to their digital wallet. The procedure for restoring access is described in the Information System Rules.

Any services related to the issuance of DFAs and execution of transactions with them can only be provided by designated organisations (information system operators and DFA exchange operators) included in the relevant registers of the Bank of Russia. Therefore, the first step would be to check the list of information system operators and DFA exchange operators admitted to the market.

Only registered users are eligible to receive services related to the issuance of DFAs and execution of transactions with them. The rules for user registration (authentication, creation of a personal account, etc.) are set out in the Information System Rules of an information system operator and/or the DFA Exchange Rules and are usually disclosed on the websites of the respective organisations. There you can also find information about the services provided by the operator (for example, only an information system operator can facilitate the issuance of DFAs).

If you have completed all the steps and become a user, the system will prompt you on what to do next to issue DFAs or to make transactions.

The rights certified by DFAs arise for their first holder from the moment the record of crediting the DFAs to that person is entered into the information system where the DFAs are issued.

Therefore, a right that exists before the record of crediting the DFAs to the first holder is entered into the information system cannot constitute a DFA.

Individuals who are not qualified investors may invest in DFAs, subject to the requirements of Bank of Russia Ordinance No. 5635-U.

The applicable regulation establishes a multi-tiered system for admitting non-qualified investors to the DFA market:

– Clause 1 of Bank of Russia Ordinance No. 5635-U specifies the characteristics of DFAs for which there is a complete ban on investment by non-qualified individual investors. For example, these include DFAs linked to securities intended only for qualified investors or DFAs for which the right to receive payments depends on the occurrence or non-occurrence of uncertain events;

– Clauses 2.1–2.6 of Bank of Russia Ordinance No. 5635-U specify the characteristics of DFAs which can be acquired by individuals who are not qualified investors without restrictions. The same approach as for other financial instruments is applied in this case. Individuals are allowed to invest without restrictions in DFAs linked to highly liquid and/or investment grade assets, such as federal government bonds, precious metals, shares of companies listed on stock exchanges, or DFAs issued by entities with high credit ratings;

– Clause 3 of Bank of Russia Ordinance No. 5635-U sets a limit of 600,000 rubles per year for investment by non-qualified investors in DFAs which do not meet the criteria defined in Clauses 1 and 2.1–2.6 of Bank of Russia Ordinance No. 5635-U. The year is counted from the date of the individual’s first transaction to purchase a DFA.

Yes, it is possible if permitted by currency legislation, for example, if the settlement is between a resident and a non-resident. Such currency transactions are allowed under Article 6 of Federal Law No. 173-FZ, dated 10 December 2003, regardless of the payment currency. The list of permitted currency transactions is given in Clauses 1–34 of Part 1 of Article 9 of Federal Law No. 173-FZ, dated 10 December 2003. Other currency transactions between residents are prohibited.

Non-qualified investors are not eligible to purchase DFAs linked to precious metals if the formula for calculating the payment amount includes a currency element or if the value of the precious metals is determined using prices of derivatives or other values of the underlying asset, which may include indicators or conditions specified in the second paragraph of Sub-clause 23 of Clause 1 of Article 2 of Federal Law No. 39-FZ, dated 22 April 1996.

Such DFAs do not meet the criterion specified in Clause 2.4 of Bank of Russia Ordinance No. 5635-U and therefore can be purchased only by qualified investors.

Only qualified investors can purchase DFAs if the decision on their issuance provides for a monetary claim, the amount of which is not determined and depends on the occurrence or non-occurrence of conditions or the change in values of indicators specified in the second paragraph of Sub-clause 23 of Clause 1 of Article 2 of Federal Law No. 39-FZ, dated 22 April 1996, including cases in which the payment amount depends on the decision of the issuer.

In accordance with Part 6 of Article 3 of Federal Law No. 259-FZ, dated 31 July 2020, the decision on the issuance of DFAs must be published and remain publicly available both on the website of the information system operator and on the website of the DFA issuer until all obligations under the DFAs are fulfilled. In certain cases specified in Part 6.1 of the same article, target decisions on the issuance of DFAs may not be published on the Internet. In such cases, the information system operator is obliged to provide access to the decision to persons eligible to purchase such DFAs and to the holders of the DFAs issued under that decision.

It is important to pay attention to the format of the document. According to Article 3 of Federal Law No. 259-FZ, dated 31 July 2020, the decision on the issuance of DFAs must be drawn up in electronic form and signed with an enhanced qualified electronic signature. Owing to the enhanced qualified electronic signature attached to the decision on the issuance of DFAs, whether published on the Internet or provided directly to users by the information system operator, potential investors can make sure that this decision has legal force and therefore reduce their risks, particularly the risk of data forgery.

In accordance with Clause 7 of Part 1 of Article 3 of Federal Law No. 259‑FZ, dated 31 July 2020, the decision on the issuance of DFAs must include the start date of the placement of the DFAs issued. However, Federal Law No. 259-FZ, dated 31 July 2020, does not prohibit the indication of the start date of the DFA placement by specifying the procedure for determining such date. In this case, any party concerned must be able to unambiguously determine the date based on the information contained in the decision on the issuance of the relevant DFAs.