Bank of Russia proposes to allow crypto purchases by select investors

The Russian central bank is considering a three-year experimental regime to authorize select Russian investors to trade cryptocurrencies.

On March 12, the Bank of Russia announced a proposal to allow a “limited circle of Russian investors” to buy and sell cryptocurrencies like Bitcoin (BTC).

“In accordance with the instructions of the President of Russia, the Bank of Russia has sent proposals to the government for discussion on regulating investments in cryptocurrencies,” the announcement stated.

While proposing to legalize crypto trading for investors with at least $1.1 million in securities and deposits, the Bank of Russia also suggested introducing penalties for violations of the experimental regime.

Retail crypto payments remain strictly banned

The central bank reiterated that other residents cannot settle payments using crypto.

The ban on using cryptocurrencies like Bitcoin for payments in Russia was part of the country’s first crypto law, “On Digital Financial Assets,” which came into force in January 2021. In the new proposal, the central bank stated:

“The Bank of Russia still does not consider cryptocurrency as a means of payment. Therefore, it proposes to also introduce a ban on settlements between residents on transactions with cryptocurrency outside the experimental legal regime, as well as establish liability for violating the ban.”

Despite banning residents from using crypto for payments in Russia, the Bank of Russia has been open about allowing cross-border settlements in crypto since at least 2022.

In December 2024, Russian Finance Minister Anton Siluanov confirmed that Russia has been actively experimenting with crypto in foreign trade in line with the country’s legislation, referring to another experimental legal regime, which was enforced in September 2024.

Reasons for introducing new regulations

The Bank of Russia’s reasoning for introducing the new crypto program for limited investors came from efforts to increase the transparency of the local cryptocurrency market, the announcement noted.

According to the central bank, such a framework would introduce standards for crypto asset service providers in Russia and expand investment opportunities for experienced investors willing to take on increased risks.

“The Bank of Russia has repeatedly noted that private cryptocurrencies are not issued or guaranteed by any jurisdiction, based on mathematical algorithms and are subject to increased volatility,” the authority stated, adding:

“Therefore, investors, when deciding to invest in cryptocurrency, should be aware that they are taking on the risks of potential loss of their funds.”Rising odds of a “Russian MicroStrategy?”

In the announcement, the central bank said that it also proposed to allow qualified companies to become participants in the experiment.

“For financial institutions that want to invest in cryptocurrency, the Bank of Russia will establish regulatory requirements taking into account the level and nature of the risks of such an asset,” the authority stated.

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By potentially allowing eligible Russian firms to invest in cryptocurrencies, the Bank of Russia may be paving the way for a “Russian MicroStrategy,” or a company that would be committed to buying large amounts of BTC following the lead of Michael Saylor’s Strategy, formerly known as MicroStrategy.

Russia’s seven largest companies by market capitalization. Source: CompaniesMarketCap 

A number of companies worldwide, including Elon Musk’s Tesla, Japan’s Metaplanet and Brazilian fintech unicorn Meliuz, have started purchasing BTC since Saylor’s Strategy purchased its first coins in August 2020.

Outside the experimental regime, all qualified investors will be able to invest in derivative financial instruments — securities and digital financial assets that are tied to the value of cryptocurrency assets — the central bank said.

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