Russia’s Central Bank Proposes Cryptocurrency Trading for Qualified Investors

Russia’s central bank, alongside President Vladimir Putin, has submitted proposals to the government to permit a limited group of local investors to trade cryptocurrencies.

According to the announcement, this initiative could be launched as a three-year experimental program.

The bank’s aim is to enable crypto trading for Russian investors who meet specific criteria: holding at least 100 million rubles (or $1.1 million) in securities and deposits or having an annual income exceeding 50 million rubles (approximately $570,000).

Entities classified as qualified investors under current legislation would be allowed to participate in this experiment.

Additionally, the Bank of Russia plans to implement regulatory requirements for financial organizations interested in adopting cryptocurrency.

The introduction of this program could enhance market transparency, provide more opportunities for seasoned investors willing to take on higher risks, and set clear standards for crypto trading.

Historically, Russia’s central bank has cautioned that cryptocurrencies are not issued or guaranteed by any jurisdiction and are known for their high volatility. Thus, investors should be aware of the potential for significant losses when entering the ecosystem.

Despite these proposals, the bank does not recognize cryptocurrencies as a means of payment. It has also suggested banning transactions involving cryptocurrencies between residents outside the experimental framework, along with potential penalties for violations.

Furthermore, reports since Russia’s military engagement in Ukraine have indicated that local firms and the government may be using cryptocurrencies to circumvent Western sanctions.