Bank of Russia Proposes Limited Crypto Purchases For Selected Investors

The Bank of Russia is contemplating a significant policy shift to permit a limited circle of Russian investors to engage in crypto trading.

“Only particularly qualified investors will be able to make transactions with cryptocurrencies within the EPR. This is a new status that citizens are expected to be able to obtain if their investments in securities and deposits exceed 100 million rubles or if their income for the past year was more than 50 million rubles,” the bank wrote.

Transparency & Opportunities 

According to an official announcement, and as directed by the Russian president, the country plans to create a special experimental legal regime (EPR) for three years.

The implementation of the EPR seeks to enhance transparency in the crypto market, establish service provision standards, and broaden investment opportunities for seasoned investors willing to accept higher risks.

However, the Bank of Russia has consistently emphasized that private digital assets are not backed or issued by any government, rely on mathematical algorithms, and experience high volatility. As a result, investors should recognize the inherent risks and the possibility of financial losses when choosing to invest in digital assets.

Beyond the experimental regime, all qualified investors are expected to be permitted to invest in settlement derivatives, securities, and digital financial assets that do not involve the direct transfer of crypto but have returns linked to its value.

Over $1M in Securities & Deposits

The Bank of Russia has also proposed legalizing crypto trading for investors with a minimum of $1.1 million in securities and deposits. Simultaneously, it has recommended implementing penalties for any breaches of the experimental regulatory framework.

While the Russian Central Bank proposes a limited time for selected investors to trade crypto like bitcoin (BTC), it still does not consider crypto a payment method. Consequently, it proposes implementing a ban on transactions between residents involving crypto outside the EPR and enforcing penalties for any violations of this restriction.

Meanwhile, by potentially permitting eligible Russian investors and companies to invest in crypto assets, the Bank of Russia could lay the groundwork for a “Russian Strategy”—a firm dedicated to acquiring significant amounts of BTC, mirroring Michael Saylor’s investment approach.