The Bank of Russia presents a pilot project on investing in cryptocurrency for wealthy investors
Central banks are looking to set standards for crypto services and increase market transparency while expanding investment opportunities for wealthy clients.
Francisco Rodriguez | Edited by Steven Alpher Updated Mar 12, 2025 14:51 UTC Published Mar 12, 2025 13:45 UTC
What you need to know:
- The Bank of Russia has proposed introducing a three-year experimental legal regime (ELR) for investments in cryptocurrency.
- Participation is only open to investors with large assets or income.
- The Central Bank continues to insist on its negative attitude towards cryptocurrency as a means of payment.
The Bank of Russia has submitted proposals to the government to implement a controlled experiment allowing “a limited number of Russian investors” to trade cryptocurrencies, in accordance with the instructions of the country’s President Vladimir Putin.
According to the central bank, the plan includes the creation of a three-year experimental legal regime (ELR) under which “particularly qualified” investors are allowed to carry out cryptocurrency transactions.
To be considered “highly qualified,” individual investors must have assets exceeding RUB 100 million ($1.14 million) or annual income exceeding RUB 50 million ($570,000). Qualified institutions will also be able to participate in cryptocurrency trading.
The main goal of this initiative is to set standards for crypto services and improve market transparency, as well as expand investment opportunities for “sophisticated investors willing to take higher risks.”
The Bank of Russia reiterated its warnings about the volatility and risks of the crypto market, noting that they have no legal basis. In line with its position, the Central Bank proposed banning cryptocurrency transactions between residents outside the EPR and introducing fines for violations.
In addition to direct trading in cryptocurrencies, the Bank of Russia plans to provide qualified investors with access to derivative financial instruments and securities related to digital assets, provided that they do not involve direct ownership of cryptocurrency.
The move marks another milestone for Russia in the cryptocurrency space. Last year, the lower house of the Federal Assembly, the State Duma, passed two bills legalizing cryptocurrency mining and introducing an experimental regime for cross-border settlements and exchange trading of digital currency.
The central bank hopes that major banks will support the digital ruble for retail and commercial use this year. The country faces tough sanctions from the US and Europe after its invasion of Ukraine, and the central bank digital currency is seen as a way to circumvent the financial restrictions it faces.
Back in 2021, the Bank of Russia stated that a central bank digital currency backed by the ruble could be used as a tool to counter sanctions.
Disclaimer: The information collected for this article was translated using artificial intelligence.
