Russia is set to launch a three-year crypto experiment restricted to a select group of investors. This is a step towards regulating digital assets in the country.
Russia’s New Crypto Proposal
The Russian Central Bank has proposed a three-year trial to allow a limited group of investors to trade cryptocurrencies. This plan is part of the government’s effort to regulate digital assets while keeping average investors out of this risky market. Only experienced investors with at least $1.1 million in securities and deposits would be allowed to participate. The Central Bank emphasized that this is not full crypto adoption but rather a test to study how cryptocurrency can work within Russia's financial system.
No Crypto Payments for Residents
Despite this step, the Bank of Russia still bans cryptocurrency payments for daily use. Since 2021, Bitcoin and other digital currencies have been restricted under the 'On Digital Financial Assets' law. The new proposal confirms that cryptocurrency can be used only for investments, not for payments. However, Russia is open to using cryptocurrency for international trade, especially after Western sanctions.
Expanding Crypto Use in Russia
While retail crypto payments are banned, Russia is exploring cryptocurrency use in foreign trade. Since 2022, the Central Bank has been open to cross-border settlements in crypto, allowing businesses to conduct international transactions using digital assets. In December 2024, Russian Finance Minister Anton Siluanov confirmed that the country had been actively testing cryptocurrency in foreign trade under an experimental legal framework introduced in September 2024.
The three-year trial period will help Russia understand how cryptocurrency can be integrated into its economic system. This could also be a preliminary step for greater corporate involvement in the digital asset market.
