The central bank of Russia has proposed a framework aimed at legalizing and regulating cryptocurrency trading for both individuals and institutions, marking a more accommodating approach towards cryptocurrencies. Nonetheless, it continues to warn that crypto investments come with risks, including potential financial losses.
“Cryptocurrencies are neither issued nor guaranteed by any jurisdiction and are susceptible to heightened volatility and sanctions risks,” the bank’s press release stated. “Investors need to be aware that engaging in crypto assets carries the risk of losing their investments.”
Additionally, the central bank noted that “digital currencies and stablecoins are classified as monetary assets; they can be traded but are not permitted for domestic payments.”
The proposal reiterates, “digital currencies and stablecoins are classified as monetary assets; they can be traded but are not allowed for domestic transactions.”
This initiative follows months of reports indicating that Russia is moving towards broader access to cryptocurrencies under regulated frameworks. Officials acknowledged the widespread usage of crypto and considered the involvement of banks. The shift also arrives amidst indications that major Russian financial institutions are preparing or seeking approval to provide spot crypto trading within this new framework.
According to the proposal, ordinary citizens in Russia would have the opportunity to buy and sell cryptocurrencies through regulated platforms. Non-qualified investors could invest up to 300,000 rubles (approximately $3,300) annually through each intermediary, contingent on passing a risk-awareness assessment. Qualified investors would be able to trade without volume limitations but would also undergo a knowledge evaluation. Privacy-centered cryptocurrencies that hide transaction details would still be banned.
The framework provides legal recognition to crypto services offered by existing financial organizations in Russia, such as exchanges, brokers, and asset managers, as long as they operate under valid licenses. It also establishes a foundation for new regulations surrounding digital asset custodians and wallet providers.
