- Russia’s central bank has proposed a trial allowing trading for qualified individuals.
- Investors with over 100M rubles in savings or earnings can participate in the trial.
- The trial will focus on increasing transparency but won’t allow crypto for payments.
The Russian Federation’s Central Bank has unveiled a proposal to allow cryptocurrency trading for qualified individuals and businesses under a three-year trial period. The new initiative could change the landscape for cryptocurrency in Russia. The government has been urged to consider the plan for further review. According to the central bank, only “qualified” investors can participate in the trial. These include individuals with over 100 million rubles ($11.5 million) in savings and stock investments or those with more than 50 million rubles in income from the previous year.
The bank has indicated that businesses can participate in the trial by meeting legal requirements. It also plans to establish regulations for financial institutions joining the program. However, cryptocurrency will remain prohibited for payment transactions by residents, consistent with existing regulations.
Cryptocurrency Payment Restrictions Remain in Place
The new proposal aligns with Russia’s existing stance on cryptocurrencies. Since January 2021, the country has had regulations in place under the “On Digital Financial Assets” law, which prohibits the use of cryptocurrencies like Bitcoin for payment settlements.
The Bank of Russia’s proposal reiterates that cryptocurrencies will not be accepted as a means of exchange between residents outside the experimental legal framework. Furthermore, the Bank plans to impose penalties for violations of this rule.
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A Potential for a “Russian MicroStrategy”?
The trial period could also pave the way for businesses to mimic the strategies of prominent companies in the industry. The Bank of Russia’s proposal could allow businesses to invest in digital assets like BTC. A scenario similar to the American company Strategy (former MicroStrategy), which has made huge investments, might emerge. The central bank has stated that it will establish guidelines to account for the risks associated with investments by financial institutions.
