Bank of Russia launches three-year pilot program allowing select investors to buy and sell cryptocurrencies under strict regulatory control
The Bank of Russia is considering a three-year pilot program that would allow a select group of investors to buy and sell cryptocurrencies. In an announcement on March 12, the institution proposed an experimental framework to regulate investments in digital assets, in line with the instructions of the Russian President. This initiative aims to explore the integration of cryptocurrencies into the country’s financial landscape while maintaining strict regulatory control.
A limited opening to wealthy investors
The project aims to only allow investors with at least $1.1 million in securities and deposits to participate in this experiment. By restricting access to financially robust actors, the Bank of Russia aims to limit the risks associated with the volatility and lack of protection of cryptocurrencies in Russian markets. However, this cautious opening would be accompanied by sanctions in case of non-compliance with the rules defined in the experimental program.
The use of cryptocurrencies for payment remains prohibited
Despite this initiative, the Russian stance on the use of cryptocurrencies in everyday transactions remains inflexible. Since the adoption of the ‘Law on digital financial assets’ in January 2021, payments in Bitcoin and other cryptocurrencies are strictly prohibited in the country. The central bank reaffirms this prohibition by suggesting the imposition of sanctions for transactions between residents conducted outside the experimental regime.
