The Central Bank of the Russian Federation has made headlines with a new proposal that could potentially change the landscape of crypto trading in the country. According to reports, the central bank is considering allowing qualified entities to engage in the buying and selling of crypto assets in a three-year experiment.
The proposed experiment would grant permission to wealthy investors and certain firms to participate in crypto trading activities. This move is seen as a step towards increasing transparency in the crypto market, although the central bank has also issued a warning about the risks involved in investing in digital assets.
To qualify for participation in the experiment, individuals must have investments in securities and deposits exceeding 100 million roubles ($1.15 million), or an income of more than 50 million roubles ($575,000) over the past year. This new status would allow them to venture into the world of crypto assets under the watchful eye of the central bank.
Russia’s stance on cryptocurrencies has been somewhat tumultuous in the past, with a law enacted in 2020 prohibiting the use of digital assets for purchasing goods and services within the country. However, recent geopolitical developments, including sanctions imposed by the US and its allies for Russia’s actions in Ukraine, seem to have prompted a reevaluation of the country’s approach to cryptocurrencies.
In September of last year, Russia passed a bill that legalized the mining of digital assets for legal entities and registered entrepreneurs. Additionally, there have been reports indicating that Russia is exploring the use of the National Payment Card System (NSPK) for trading rubles and cryptocurrencies as part of a payment and exchange platform test.
The NSPK, which is owned by the Central Bank of Russia, was placed under sanctions by the US Department of the Treasury in February 2024. Despite this, Russia seems determined to explore new avenues for crypto trading and financial transactions.
As the crypto landscape continues to evolve, it will be interesting to see how Russia’s experiment with crypto trading for qualified entities unfolds. The potential for increased transparency and participation in the digital asset market could pave the way for further developments in the country’s financial sector.
Follow us on X, Facebook, and Telegram for the latest updates in the world of cryptocurrency. Don’t miss out on any important news – subscribe to get email alerts delivered directly to your inbox. Stay informed about price action and dive into The Daily Hodl Mix for a comprehensive look at the crypto market.
Image credit: Midjourney.