Russia’s central bank, along with the directive of the nation’s president, Vladimir Putin, has submitted proposals to the government to allow a limited group of local investors to buy and sell cryptocurrencies.
According to the announcement, the initiative could first be in a three-year experimental regime.
The banking institution’s idea is to enable crypto trading for only those Russian investors who have at least 100 million rubles (or $1.1 million) in securities and deposits or whose annual income in the previous year exceeded 50 million rubles (approximately $570,000).
The proposal allows entities categorized as qualified investors under current legislation to participate in the experiment.
The Bank of Russia also aims to establish certain regulatory requirements for financial organizations willing to adopt cryptocurrency.
The introduction of this regime could increase market transparency, offer more opportunities for experienced investors who are open to taking on higher risks, and establish clear standards.
In the past, Russia’s central bank has repeatedly warned that cryptocurrencies are not issued or guaranteed by any jurisdiction and are notorious for their enhanced volatility. As such, investors should be aware that entering the ecosystem might result in crucial losses.
The banking institution still does not recognize the asset class as a means of payment. That said, it proposed banning transactions between residents involving cryptocurrencies outside the experimental regime and enforcing penalties for violating this rule.
On the other hand, multiplereports have emerged since Russia’s ‘special military operation’ against Ukraine that started over three years ago that local firms, as well as the government, are using crypto to bypass Western sanctions.