Retail Investors Brace for Crypto Access as Russia's Central Bank Shifts Policies

Retail Investors Brace for Crypto Access as Russia's Central Bank Shifts Policies

Russia's central bank proposes allowing non-qualified investors to buy select cryptocurrencies, capped at $3,834 annually, signaling a major shift in crypto access.

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The Bank of Russia has proposed new regulations that would facilitate retail access to specific cryptocurrencies for Russian investors. This policy aims to allow both qualified and non-qualified individuals to engage in cryptocurrency transactions, albeit with set limitations.

Under the proposed framework, non-qualified investors may invest in a defined category of liquid cryptocurrencies after passing a knowledge assessment. Their annual investment would be capped at 300,000 rubles (approximately $3,834). In contrast, qualified investors would enjoy broader access, although investments in privacy coins would remain prohibited, and they too must complete a knowledge test.

Moreover, Russian residents will be permitted to purchase cryptocurrencies on international platforms and use foreign accounts for payment, with a requirement to report these transactions to the tax authorities. This development follows earlier remarks from the central bank's first deputy governor, who indicated a potential easing of existing crypto regulations.

Despite these changes, the Bank of Russia maintains its stance on cryptocurrencies as high-risk assets, emphasizing that they cannot be utilized for domestic payments, as mandated by a law enacted in June 2020. The proposal will allow transactions through licensed exchanges, brokers, and trustees, while specialized depositories handling cryptocurrencies will also be regulated.

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