The Bank of Russia proposes allowing selected investors to trade cryptocurrency.
Russia’s central bank has proposed enabling a small group of Russian investors to purchase and sell crypto assets such as Bitcoin (BTC) under a new experimental legal system.
The central bank aims to set norms for cryptocurrency-related services, increase market transparency, and broaden investment alternatives for high-net-worth individuals.
Three-Year Experimental Regime for Crypto Investment in Russia
On March 12, the Bank of Russia recommended enabling a “limited circle of Russian investors” to trade cryptocurrency. The bank emphasised that the plan is based on a mandate from Russian President Vladimir Putin. The Bank of Russia has given ideas to the government for discussion on regulating investments in cryptocurrencies, per the President’s directions, according to the release.
According to a central bank statement, the idea would establish a three-year experimental legal framework under which qualified investors might execute cryptocurrency transactions. Investors who want to participate in the experimental framework must have at least 100 million rubles ($1.14 million) in investments or an annual income of more than 50 million rubles ($570,000). Notably, eligibility also extends to institutions that have already satisfied existing qualification standards under the current framework.
The Bank of Russia’s justification for launching the new crypto program for select investors stemmed from efforts to set standards for crypto-related services, boost market transparency, and broaden investment prospects for “experienced investors willing to assume higher risks.”
Bank of Russia maintains ban on retail cryptocurrency payments.
The Bank of Russia reinforced its warnings about the inherent volatility and hazards of investing in cryptocurrencies, emphasising that these assets are guaranteed by any country. As a result, when investors decide to invest in Bitcoin, they should be informed that they are accepting the risk of losing their cash,” the bank warned.
Despite the recommendation, the Bank of Russia stated that cryptocurrency transactions between citizens outside of the experimental legal system remain prohibited. The bank proposed imposing fines for infractions of the experimental regime.
Nonetheless, the action is Russia’s newest incursion into the cryptocurrency industry. Last year, the country’s lower chamber, the Federal Assembly, or State Duma, enacted two legislation legalising cryptocurrency mining and imposing another experimental regime on cross-border settlements and foreign crypto trade.