- Bank of Russia plans a three-year crypto trading pilot for select investors.
- High-net-worth individuals and institutions eligible for crypto trading.
- Russia maintains a ban on retail crypto payments, imposes penalties.
The Bank of Russia has proposed a three-year experimental legal regime(ELR) for cryptocurrency trading. Under this regime, select high-net-worth investors would be authorized to buy and sell digital assets such as Bitcoin. The central bank’s proposal aims to enhance market transparency and establish standards for digital assets services.
Bank of Russia Launches Crypto Trading Program for Elites
The proposed framework targets individuals with at least $1.1 million in securities and deposits or an annual income of over $570,000. Additionally, qualified institutions would be allowed to participate in the crypto market. The Bank of Russia emphasized that this initiative is designed for investors who are experienced and able to handle the risks associated with digital currencies.
However, the Bank of Russia remains firm on its position on the ban on retail payments. The central bank has reiterated that crypto payments between Russian residents will remain banned. It also proposed penalties for any violations of this rule outside the experimental regime.
The initiative would also permit qualified investors to access derivatives and securities linked to digital assets. However, these investments would not involve direct ownership of digital assets. The bank aims to offer a regulated environment where investors can gain exposure to the crypto market as well as protect consumers.
Russia’s Conservative Approach to Crypto Amid Sanctions
Russia’s central bank has been cautious about digital assets, citing volatility and lack of backing by any jurisdiction. However, the Bank of Russia aims to expand investment opportunities for high-net-worth individuals who are willing to take on higher risks. It has proposed the creation of standards to govern the digital asset market and promote transparency.
The proposal comes after Russia’s lower house, the State Duma, passed digital asset legislations. The bills legalized cryptocurrency mining and created an experimental regime for cross-border settlements. These efforts align with the country’s strategy to integrate digital assets into the Russian economy while managing risks. The country is exploring the use of a digital ruble to counteract the economic pressures from international sanctions.
The Bank of Russia’s proposal for an experimental crypto trading regime could reshape the country’s relationship with digital currencies. Although digital assets are still not considered a legitimate means of payment, this plan represents a major shift. This reflects Russia’s interest in a regulated digital asset space that limits exposure to its more volatile aspects.
The Bank of Russia is also making efforts in the development of a digital ruble. This digital currency is seen as a potential tool to bypass international sanctions and financial restrictions imposed by Western countries. The central bank aims to launch the digital ruble later this year, to further enhance Russia’s financial independence.