Is it legal to use company funds to invest in crypto assets?

The current legislation of the Russian Federation, including Federal Law No. 259-FZ dated July 31, 2020, does not contain a direct prohibition on the use of funds of legal entities for investing in crypto assets. Thus, a company is entitled to acquire digital currency as an investment instrument, provided that such activity complies with its charter objectives and internal regulations. However, since digital currency is recognized neither as a legal means of payment nor as a financial instrument, such investments entail a number of legal and accounting peculiarities. Organizations should consider risks related to the volatility of the cryptocurrency market and ensure proper reflection of transactions in accounting and tax records. Moreover, such actions must be economically justified and approved by the competent governing bodies of the company (e.g., the general meeting of participants or the board of directors), especially when substantial amounts are involved.