The Central Bank of Russia has developed a framework to regulate cryptocurrencies in the domestic market. This framework will allow both retail and qualified investors to purchase cryptocurrencies, once again demonstrating how sanctions have altered Russia’s attitude towards cryptocurrencies.
The Central Bank of Russia said in a statement on Tuesday that non-qualified investors can purchase the most liquid cryptocurrencies after passing a knowledge test, but the annual transaction limit through a single intermediary is 300,000 rubles (about 3,800 US dollars). Qualified investors can purchase any cryptocurrency except anonymous tokens after passing a risk awareness test, and there is no limit on the purchase amount.
The bank has submitted a legislative amendment proposal to the government, aiming to regulate cryptocurrency transactions, with the goal of coming into effect by July 1 next year. Although it is still unclear how these proposed rules will be implemented, this move marks another significant shift in the regulatory authorities’ attitude towards the use of cryptocurrencies.
The Central Bank of Russia issued a statement on Tuesday, saying: “The Central Bank of Russia still regards cryptocurrencies as high-risk assets. Investors should be aware that they are taking the risk of losing their funds.”
The statement said that cryptocurrency transactions in Russia will be conducted through existing licensed infrastructure, including exchanges, brokers and trustees, while custodians and exchange services will be subject to separate requirements.
Residents can also purchase cryptocurrencies abroad and transfer the held cryptocurrencies through Russian intermediaries, but they must comply with tax declaration regulations.
The Central Bank of Russia relaxed its domestic regulations on cryptocurrency transactions for enterprises for the first time in 2024. Even without comprehensive supervision, Russian citizens and companies have been using cryptocurrencies for international remittances, and this trend has intensified since sanctions were imposed on major Russian banks in 2022.
