Russia’s Central Bank Proposes Crypto Trading for Wealthy Investors in 3-Year Test

Russia Proposes Crypto Trading for Ultra-Wealthy Investors While Maintaining Payment Ban

  • Russia‘s central bank proposes regulations allowing wealthy individuals with at least 100 million rubles (~$11.5 million) in investments to trade cryptocurrencies during a three-year test period.
  • Despite allowing trading for qualified investors, Russia maintains its ban on using cryptocurrencies for domestic payments, though international payments were legalized last year.
  • The country has gradually warmed to cryptocurrency since 2022, with Putin signing a mining law and publicly questioning whether anyone could effectively ban Bitcoin.

Russia’s central bank has proposed new regulations that would permit ultra-wealthy investors to trade cryptocurrencies during a three-year experimental period, according to an official statement released Wednesday. The program would be limited to individuals with substantial financial resources, marking a significant shift in the country’s approach to digital assets.

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Under the proposed framework, only “particularly qualified investors” would gain cryptocurrency trading privileges. This elite category includes individuals with stock and deposit investments exceeding 100 million rubles (approximately $11.5 million) or those who earned more than 50 million rubles ($5.7 million) in the past year. Select institutional investors would also be permitted to participate in what the central bank calls an experimental legal regime (EPR).

Bank of Russia officials explained that these regulations aim to increase market transparency while providing investment opportunities for experienced financial players. “The introduction of the EPR is aimed at increasing the transparency of the cryptocurrency market, forming standards for the provision of services, expanding investment opportunities for experienced investors who are ready to take on increased risks,” the bank stated.

The central bank emphasized that cryptocurrencies would still be prohibited as a payment method within Russia, citing their lack of jurisdictional guarantees and high volatility. This selective approach reflects Russia’s evolving stance on digital assets since the Ukraine conflict began.

Russia’s relationship with cryptocurrency has transformed significantly since 2022, when President Vladimir Putin signed legislation banning digital assets for payments. Following international sanctions imposed after Russia’s invasion of Ukraine, lawmakers voted to legalize cryptocurrency for international payments, creating a pathway for sanctions evasion. Putin subsequently signed a law permitting cryptocurrency mining operations throughout the country.

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In a notable public forum last December, Putin questioned the feasibility of cryptocurrency prohibition. “For example, Bitcoin, who can ban it?” he remarked. “Nobody. And who can prohibit the use of other electronic payment instruments? Nobody, because these are new technologies.” Bitcoin’s price surged past $100,000 shortly after these comments, though it has since retreated to around $83,000, approximately 20% below its all-time high of nearly $109,000.

The proposed regulations reflect Russia’s pragmatic approach to cryptocurrency—restricting domestic use while leveraging its potential for circumventing international financial restrictions imposed after its illegal invasion of Ukraine.

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