The Central Bank of Russia has proposed to the government the establishment of a comprehensive regulatory framework for digital currency investments within a three-year experimental legal environment, in response to directives from the Russian president. This framework aims to regulate the buying and selling of digital currencies, allowing a limited group of qualified investors to participate in this market under strict controls.
Strict Conditions for Qualifying Digital Currency Investors Investment in digital assets will not be available to everyone, as it will be limited to qualified investors—individuals who own investments exceeding 100 million rubles in securities and deposits or whose annual income exceeds 50 million rubles. Participation is also allowed for companies and financial institutions that meet the required regulatory criteria, provided that these entities comply with the requirements set by the central bank based on a risk-based framework.
This initiative aims to improve transparency in the digital currency market, establishing clear standards for financial services and expanding investment opportunities for experienced investors. This comes as Russia seeks to strike a balance between supporting financial innovation and protecting the market from sharp fluctuations and risks associated with digital assets.
Central Bank Warnings About Digital Currency Risks The Central Bank of Russia has confirmed that private digital currencies exhibit sharp price volatility and lack official support from any government body, making investors susceptible to potential losses in the event of price changes. Despite this initiative, the bank continues to reject the use of cryptocurrencies as a means of payment, suggesting a ban on all transactions involving digital currencies between residents outside the Eurozone, with strict penalties for violators.
The new regulatory framework will allow qualified investors to invest in financial derivatives, securities, and digital assets linked to the value of cryptocurrencies, provided that these digital assets are not delivered directly. This policy indicates that Russia is taking a cautious approach to digital currencies, imposing restrictions on their use in payments while continuing to study regulatory measures for investments and cross-border transactions.
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