Central Bank of Russia Proposes Access to Cryptocurrency for Retail Investors
The Central Bank of Russia has introduced draft regulations to permit retail investors to engage in cryptocurrency trading under specific conditions.
The Central Bank of Russia has set forth a draft proposal aimed at granting access to certain cryptocurrencies for retail investors, contingent on defined regulations.
On Tuesday, an announcement detailed that the proposal permits both qualified and non-qualified investors to trade most cryptocurrencies, albeit with restrictions.
Non-qualified investors will be allowed to purchase a yet-to-be-specified range of liquid cryptocurrencies after successfully passing a knowledge examination, capped at an annual investment limit of 300,000 rubles (approximately $3,834). Qualified investors, meanwhile, will have unrestricted access to the market, minus privacy coins, also pending a knowledge assessment.
Furthermore, Russian citizens will gain the ability to purchase cryptocurrencies from international platforms, utilize foreign accounts for payments, and liaise with Russian intermediaries regarding these assets. It is important to note that they must inform the tax authorities about these financial transactions.
The Bank of Russia, Moscow
The Bank of Russia, Moscow. Source: Ludvig14, CC BY-SA 4.0
Related: Belarus blocks Bybit, Bitget, OKX as Russia clamps down on crypto gray area
Broader Expectations for Change
The proposal follows a recent comment from the Bank’s First Deputy Governor, Vladimir Chistyukhin, indicating that Russia is contemplating a relaxation of its cryptocurrency trading regulations.
Chistyukhin suggested that there might be an elimination of the stringent “super-qualified investor” requirement necessary for engaging in crypto transactions with actual deliverables.
This “super-qualified investor” designation was established in late April, coinciding with the launch of a cryptocurrency exchange by the finance ministry and the central bank, characterized by specific wealth and income benchmarks exceeding 100 million rubles (around $1.3 million) or minimum annual earnings of 50 million rubles.
Related: Why Russia ranks highest in Europe for crypto adoption: Chainalysis
A Cautious Approach
The central bank has reiterated its stance that cryptocurrencies remain a high-risk investment option.
While it acknowledges stablecoins and cryptocurrencies as tradable monetary assets, it maintains that these cannot serve as valid payment methods domestically. This reaffirms legislation passed by the State Duma in June 2020, prohibiting the use of digital currencies as payment vehicles.
Under the current proposal, crypto trading will be facilitated via exchanges, brokers, and trustees operating under their respective licenses, while specialized exchanges and depositories handling cryptocurrencies will be obliged to follow an independent set of regulations.
