Bank of Russia Proposes Experimental Crypto Trading for Qualified Investors

The Bank of Russia has proposed an experimental legal regime (ELR) for a select group of investors to trade cryptocurrencies, following a directive from President Vladimir Putin. Key points include:

The ELR will last three years.
Qualified individual investors must have over 100 million rubles ($1.14 million) in investments or an annual income above 50 million rubles ($570,000).
Institutions recognized as qualified investors are also eligible to trade cryptocurrencies.
The initiative aims to set standards for crypto services and enhance market transparency.
The Bank of Russia warns about the volatility of the cryptocurrency market and proposes penalties for transactions outside the ELR.
Qualified investors may access derivatives and securities linked to digital assets without direct ownership of cryptocurrencies.

This move follows previous legislation that legalized cryptocurrency mining and established an experimental regime for cross-border settlements. The central bank is also working towards implementing a digital ruble to mitigate financial sanctions imposed due to geopolitical tensions.