The Bank of Russia proposed a three-year experimental program allowing a limited group of investors to trade cryptocurrencies, including Bitcoin.
Experimental Program and Conditions
On March 12, the Bank of Russia announced it sent regulatory proposals to the government, outlining a framework for crypto investments. Investors with at least $1.1 million in securities and deposits will be permitted to buy and sell digital assets under the proposed plan, though penalties for violations of the trial regime will be imposed.
Bans and Crypto Payment Regulation
Despite the shift, Russia maintains a strict ban on crypto payments. The country's 2021 law on digital financial assets prohibits the use of cryptocurrencies like Bitcoin for transactions, a stance the central bank reaffirmed in its latest proposal. Since 2022, Russia has been exploring cross-border crypto payments, particularly for international trade.
Exchange Infrastructure and Crackdown on Illegal Activities
The central bank aims to increase market transparency and set standards for crypto service providers. It suggests regulatory standards for financial institutions interested in directly investing in crypto. Alongside, authorities cracked down on illegal mining operations, shutting down 130 cases of unauthorized connections and electricity theft. Russian energy authorities also announced plans to introduce a mandatory registry for mining equipment to improve oversight.
Russian authorities continue to study and regulate cryptocurrency assets, introducing new measures to ensure market security and transparency. Despite new initiatives, the legislative ban on using cryptocurrencies as a means of payment remains in force.
