Bank of Russia Proposes Crypto Trading Framework

The Bank of Russia announced a proposed regulatory framework on December 23 that would formalize cryptocurrency trading in the country, allowing both retail and qualified investors limited access to digital assets while imposing strict safeguards. The initiative, submitted to the Russian government for review, recognizes cryptocurrencies and stablecoins as monetary assets that can be legally bought and sold but prohibits their use for domestic payments, reinforcing existing laws that mandate ruble transactions within Russia.

Under the framework, the central bank introduces a two-tier investor system to differentiate access based on experience and risk tolerance. Nonqualified, or retail, investors would be permitted to purchase only a predefined list of the most liquid cryptocurrencies, such as Bitcoin, after passing a mandatory test demonstrating knowledge of associated risks. Their annual purchases would be capped at 300,000 rubles, equivalent to about 3,800 U.S. dollars, and limited to a single licensed intermediary. This approach aims to protect less experienced participants from the volatility and other hazards of digital assets, which the central bank describes as...