The Bank of Russia has submitted proposals to the government to establish a regulated framework for cryptocurrency investments under a three-year experimental legal regime.

The initiative, following directives from the Russian president, would permit a restricted group of investors to buy and sell digital currencies.

Under the proposal, only “particularly qualified” investors — those with investments exceeding 100 million rubles in securities and deposits or an annual income above 50 million rubles — would be eligible. 

Additionally, corporate-qualified investors and financial organizations meeting regulatory standards could participate. The central bank will introduce specific risk-based requirements for financial institutions investing in cryptocurrency.

Investment opportunities in Russia

The initiative aims to enhance market transparency, establish service standards, and expand investment opportunities for experienced investors. 

The Bank of Russia maintains that private cryptocurrencies are highly volatile and not backed by any jurisdiction. Investors would bear the risk of potential losses.

The central bank continues to reject cryptocurrency as a means of payment and proposes banning crypto transactions between residents outside the EPR, with penalties for violations. 

However, all qualified investors would be allowed to invest in derivatives, securities, and digital financial assets linked to crypto value but not involving direct delivery of crypto assets.

Russia has maintained a cautious stance on digital assets, restricting their use for payments while exploring regulatory measures for investment and cross-border transactions.