The Central Bank of Russia has presented an innovative proposal to allow a select group of qualified investors to buy and sell crypto such as Bitcoin (BTC).
This experimental regime, which will last three years, aims to improve the transparency of the cryptocurrency market in the country and to regulate digital investments.
Russia: a new regulatory framework for selected crypto investors
On March 12, the Bank of Russia announced that it had sent a proposal to the government to discuss the regulation of cryptocurrencies.
The new program would allow only investors with at least 1.1 million dollars in securities and deposits to participate in the digital currency market.
In parallel, the institution has proposed to introduce penalties and sanctions for those who violate the rules imposed by the experimental regime.
This project represents an important step forward in the regulation of a sector that, until today, has encountered resistance from the Russian authorities.
Despite the openness to investments, the Bank of Russia maintains the absolute ban regarding the use of cryptocurrencies as a means of payment within the country. This ban has been in effect since January 2021, when the law on “Digital Financial Assets” was approved.
In its recent announcement, the bank reiterated:
“The Bank of Russia does not consider cryptocurrencies as a means of payment. Therefore, it proposes to ban transactions between residents conducted with cryptocurrencies outside the experimental regime, imposing liability for the violation of this ban.”
However, although cryptocurrencies remain banned for domestic payments, Russia has shown willingness to use them for international transactions since 2022.
In December 2024, the Russian Finance Minister Anton Siluanov confirmed that the country is actively experimenting with cryptocurrencies in foreign trade, in line with an experimental legal regime active since September of the same year.
The objectives of the new experimental regime
The decision of the Bank of Russia to open a regulated market for cryptocurrencies for selected investors is based on the need to increase transparency in the sector.
According to the central bank, this measure would lead to the definition of standards for fornitori di servizi in criptovalute and could expand investment opportunities for those willing to take on a high level of risk.
The bank also reiterated the risks associated with cryptocurrencies:
“Private cryptocurrencies are neither issued nor guaranteed by any jurisdiction. They are based on mathematical algorithms and are subject to high volatility. Investors must be aware of the risks of financial losses.”
The experimental regime will introduce strict regulatory requirements for financial institutions that intend to invest in cryptocurrencies. This could lead to a more structured regulation for the entire sector.
Another significant aspect of the proposal concerns the potential authorization of aziende qualificate to participate in the experimental program. The Bank of Russia stated:
“For financial institutions interested in investing in cryptocurrencies, specific regulations will be established, depending on the level and nature of the associated risks.”
This decision could pave the way for the creation of a “Russian MicroStrategy”, that is, companies ready to invest heavily in Bitcoin, following the example of the company founded by Michael Saylor.
Since 2020, various global companies, including Tesla by Elon Musk, Metaplanet in Japan, and the Brazilian fintech Meliuz, have decided to diversify their investments by purchasing Bitcoin.
If Russia followed this trend, one might witness a significant increase in the involvement of Russian companies in the cryptocurrency sector.
Access to derivative instruments for qualified investors
In addition to direct investments in cryptocurrencies, the Bank of Russia has announced that qualified investors will have the opportunity to also invest in derivative financial instruments. These will include securities and other digital instruments linked to the value of cryptographic assets.
This move could attract a growing number of institutional investors, both Russian and foreign, interested in leveraging the cryptocurrency market through regulated and low-risk instruments.
The initiative by the Bank of Russia to create an experimental regime for investments in cryptocurrencies represents a significant step forward in the regulation of the sector.
While maintaining the ban on internal payments in cryptocurrencies, Russia seems intent on developing a regulated market for selected investors and financial institutions.
This strategy could transform Russia into a key player in the global cryptocurrency landscape, potentially giving rise to a national version of MicroStrategy.
However, the project also involves risks and challenges, especially concerning the volatility of cryptocurrencies and the need for strict regulation.
It remains to be seen how the Russian government will respond to the Central Bank’s proposal and if this initiative will succeed in balancing the risk with the opportunities offered by the crypto market.
