The Bank of Russia has submitted its proposals for regulating cryptocurrency investments to the Russian Government, following instructions from the President of the Russian Federation. The proposals include a special experimental legal regime lasting three years, aimed at allowing a limited number of Russian investors to engage in cryptocurrency transactions.
Under this regime, only ‘especially qualified’ investors will be allowed to conduct cryptocurrency transactions. This new status may be granted to individuals whose investments in securities and deposits exceed ₽100 million and incomes over the last year surpass ₽50 million. Additionally, companies that qualify as investors under current law are expected to participate. Financial corporations interested in investing will face regulatory requirements based on risk levels associated with cryptocurrencies.
The introduction of this experimental legal regime aims to improve market transparency, set service standards, and expand investment opportunities for sophisticated investors willing to take on higher risks. The Bank of Russia emphasizes that private cryptocurrencies are neither issued nor guaranteed by any jurisdiction and are susceptible to extreme volatility. Investors should be aware of the potential risks involved.
Despite these developments, the Bank of Russia maintains that cryptocurrencies are not recognized as a means of payment. Consequently, it proposes banning cryptocurrency settlements between residents outside the experimental legal regime and establishing penalties for violations.
Qualified investors will still be permitted to invest in derivatives, securities, and digital financial assets linked to cryptocurrency values without direct delivery under this regime.
