The central bank of Russia is exploring a new experimental framework to legally permit certain Russian investors to engage in cryptocurrency trading.
On March 12, the Bank of Russia revealed a proposal aimed at authorizing a “restricted group of Russian investors” to purchase and trade cryptocurrencies such as Bitcoin (BTC).
“Following the directives of the President of Russia, the Bank of Russia has submitted recommendations to the government for consideration regarding the regulation of cryptocurrency investments,” the announcement declared.
In its proposal, the Bank of Russia suggested that only investors possessing a minimum of $1.1 million in securities and deposits would qualify to trade cryptocurrencies, and it recommended implementing penalties for transactions that do not comply with this new regime.
Retail cryptocurrency payments remain strictly prohibited
While the central bank is contemplating regulatory changes for wealthy investors regarding crypto investments, it has firmly stated that residents are not permitted to use cryptocurrencies for payment transactions.
The prohibition on utilizing cryptocurrencies like Bitcoin for payments in Russia was established under the nation’s initial crypto legislation, “On Digital Financial Assets,” which took effect in January 2021. In the recent proposal, the central bank noted:
“The Bank of Russia continues to regard cryptocurrency as not being a valid means of payment. Hence, it proposes a ban on settlements between residents for cryptocurrency transactions beyond the experimental legal framework and aims to establish penalties for any violations of this prohibition.”
This is a developing story, and additional information will be provided as it becomes available.