The central bank of Russia, under the direction of the president of Russia, has presented a proposal for the legalization of investments in cryptocurrencies in the country. The central bank confirmed the development in an announcement today.
According to the announcement, the proposal is to allow a limited number of Russian investors buy and sell cryptocurrencies. To carry out this initiative, the government plans to establish a special experimental legal regime (EPR) for a period of three years.
Russia to bestow EPR status on special investors
According to the announcement, the central bank plans to bestow the EPR status on “special investors” whose investments in securities and deposits exceed 100 million rubles, or whose income for the past year exceeded 50 million rubles. The central bank of Russia added that companies that are qualified investors under the current legislation will become participants in the experiment.
Notably, the Russian central bank introduction of EPR represents a significant steps towards ensuring transparency in the cryptocurrency market. The EPR also aims to expand investment opportunities for investors.
Meanwhile, the central bank of Russia noted that private cryptocurrencies are not issued nor guaranteed by any of the country’s jurisdictions. It added that cryptocurrency is based on mathematical algorithms and subject to increased volatility, as such, investors should be well informed of the risk of their potential investments.
The central bank also prohibit the usage of cryptocurrency as a means of payment by that other residents of Russia. Recall that the Russian government banned the use of cryptocurrencies for payment in January 2021 under its first crypto law,“On Digital Financial Assets”.
Over time, Russia has maintained a prudent approach towards digital assets, carefully restricting its use for payment, while developing regulatory measures for investment and cross-border payment. In 2024, the Russian government banned cryptocurrency mining in ten regions to combat energy blackouts. Some of the affected regions are Dagestan, Ingushetia, Kabardino-Balkaria, Karachay-Cherkessia, North Ossetia, Chechnya, Zaporizhzhia and Kherson.
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