The Bank of Russia has presented proposals to the government for a controlled experiment that allows a “limited group of Russian investors” to exchange cryptocurrencies, based on a directive of the country’s president, Vladimir Putin.
The Plan would introduce an experimental legal regime (ELR) that lasts three years in which “particularly qualified” investors could make cryptocurrency transactions, according to a statement from the Central Bank.
To be considered “particularly qualified”, individual investors would need to have more than 100 million rubles ($ 1.14 million) in investments or an annual income of more than 50 million rubles ($ 570,000). The institutions recognized as qualified investors could also exchange cryptocurrencies.
The initiative aims to establish standards for cryptography related services and increase market transparency, while expanding investment opportunities for “experienced investors willing to assume higher risks.”
The Russia Bank repeated its warnings about the volatility and risks of the cryptocurrency market, emphasizing that they are not backed by any jurisdiction. In line with its position, the Central Bank proposed to prohibit cryptocurrency transactions between residents outside the ELR and enforce the sanctions for violations.
Beyond the direct trade of cryptocurrencies, the Russia Bank plans to allow qualified investors to access derivatives and values linked to digital assets, provided they do not involve the direct property of cryptocurrencies.
Movement is Russia’s last raid in the cryptocurrency space. Last year, the lower house of the Federal Assembly of the country, the State Duma, approved two bills that legalize cryptocurrency mining and bring an experimental regime on cross -border settlements and exchange trade in digital currency.
The Central Bank of the country is looking to obtain its largest banks to support a digital ruble for retail and commercial use at the end of this year. The country has been strongly sanctioned by the United States and Europe after its invasion of Ukraine, and the Central Bank digital currency is considered a way to avoid the financial restrictions it faces.
In 2021, the Bank of Russia said that the Central Bank digital currency backed by Rublo could be used as a tool against sanctions.
Discharge of responsibility: the information collected for this article was translated with the use of artificial intelligence.
