Crypto Investments to be Permitted in Moderation by Russia's Central Bank

The Central Bank of Russia has put forth suggestions to the government to create a controlled environment for cryptocurrency investments through a three-year trial legal system.

This plan, which comes after instructions from the president of Russia, would enable a select group of investors to purchase and trade digital currencies.

According to the proposal, only "specially qualified" investors - those with investments greater than 100 million rubles in securities and deposits or an annual income above 50 million rubles - would be allowed to participate.

Moreover, corporate-qualified investors and financial organizations that meet regulatory criteria could also take part. The central bank will implement specific risk-based prerequisites for financial institutions engaging in cryptocurrency investments.

Investment prospects in Russia

The goal of this initiative is to improve market transparency, set service benchmarks, and broaden investment opportunities for seasoned investors.

The Bank of Russia emphasizes that private cryptocurrencies are extremely unstable and not supported by any legal authority. Investors would be responsible for any potential losses.

The central bank continues to dismiss cryptocurrency as a payment method and suggests prohibiting crypto transactions between residents outside the EPR, with penalties for violations.

Nonetheless, all qualified investors would be permitted to invest in derivatives, securities, and digital financial assets tied to cryptocurrency value without involving the direct transfer of crypto assets.

Russia has taken a guarded approach towards digital assets, limiting their use for payments while examining regulatory measures for investment and cross-border transactions.