The central bank of Russia softens its stance on cryptocurrencies with new retail trading regulations

Source: Yellow Original Title: The Central Bank of Russia softens its stance on cryptocurrencies with new retail trading rules

Original Link: https://yellow.com/en/news/the-central-bank-of-russia-softens-its-stance-on-cryptocurrencies-with-new-retail-trading-rules

What has happened

According to the proposal published on Tuesday, the Bank of Russia would allow non-qualified investors to purchase selected cryptocurrencies with high liquidity after completing a knowledge assessment.

Annual purchases for these investors would be limited to 300,000 rubles, or approximately 3,800 dollars, and transactions would have to be conducted through a single authorized intermediary.

Qualified investors, on the other hand, could purchase unlimited amounts of cryptocurrencies, excluding anonymous tokens, after passing an independent test designed to confirm that they are aware of the risks involved.

The central bank stated that it has submitted the proposal to the government as part of a package of legislative amendments, aiming to establish a regulated negotiation framework by July 1 of next year.

Although the application details have not yet been clarified, the measure represents a notable departure from the regulator's previously strict stance on digital assets.

Why it is important

Just a few weeks before Russia launched its large-scale invasion of Ukraine in early 2022, the central bank had called for a general ban on the issuance and use of cryptocurrencies, warning that they posed systemic risks and comparing them to pyramid schemes.

In its latest statement, the regulator maintained that cryptocurrencies remain high-risk instruments, warning investors that losses could be substantial.

If approved, the new regulations would channel national cryptocurrency transactions through the existing licensed financial infrastructure in Russia, including exchanges, brokers, and trust management companies.

Separate regulatory requirements would apply to custody and exchange services.

Russian residents could also buy cryptocurrencies abroad and move their holdings through national intermediaries, as long as they meet tax reporting obligations.

The policy change is based on the measures adopted in 2024, when the central bank first relaxed restrictions to allow companies a limited use of cryptocurrencies.

Even in the absence of comprehensive regulation, both individuals and businesses in Russia have increasingly turned to digital assets for cross-border payments, especially after sanctions limited access to traditional banking channels.

The latest proposal suggests that the authorities are now seeking to subject that activity to regulatory oversight in a more formal manner.