Bank of Russia proposes to allow cryptocurrency trading for “specially qualified” investors

What’s new? The Central Bank of the Russian Federation has proposed to allow a limited number of Russian investors to buy and sell cryptocurrencies under an experimental legal regime (ELR), which will be valid for three years. Such a proposal was sent to the Government under the instruction of Russian President Vladimir Putin.

Press release

What else is known? Only “specially qualified” investors will be able to conduct transactions within the regulatory sandbox. This is a new category, which may include citizens whose investments in securities and deposits exceed 100 million Russian rubles (RUB) and whose income last year amounted to more than 50 million RUB.

Also, companies that already have the status of qualified investors under the current legislation will be able to join the experiment. For financial organizations that will want to invest in cryptocurrency, the Central Bank will establish regulatory requirements taking into account the level and nature of risks.

The introduction of the ELR is designed to increase the transparency of the crypto market, form standards of service provision on it, and expand investment opportunities for experienced investors.

“The Bank of Russia has repeatedly noted that private cryptocurrency is not issued or guaranteed by any jurisdiction, is based on mathematical algorithms, and is subject to increased volatility. Therefore, investors, deciding to invest in cryptocurrencies, should realize that they assume the risks of potential loss of their funds,” the press release stressed.

The Central Bank reminded that it still does not consider cryptocurrency as a means of payment. In this regard, it proposes to introduce a ban on settlements between residents on transactions with cryptocurrency outside the ELR and liability for violation of such a ban.

In addition, outside the ELR, the Central Bank plans to allow all qualified investors to invest in derivatives, securities, and digital financial assets that do not involve the delivery of cryptocurrency to investors, but whose returns are linked to its value.