The Bank of Russia has announced a major policy shift, allowing a select group of investors to buy and sell cryptocurrencies under a special three-year experimental legal regime (EPR).
While crypto remains banned as a payment method, the move signals a controlled approach to crypto adoption and regulation in the country.
Background
- Only "especially qualified" investors—including individuals, corporate entities, and financial organizations—will be allowed to trade cryptocurrencies under the EPR framework.
- To qualify, individuals must either:
Hold over 100 million rubles (~$1.1 million) in securities and deposits, or
Have an annual income exceeding 50 million rubles (~$550,000).
- Financial institutions that wish to invest in crypto must comply with strict regulatory requirements set by the Bank of Russia to mitigate associated risks.
- According to a statement, the initiative aims to increase market transparency, establish industry standards, and expand investment opportunities for those willing to take on higher risks.
- Despite this shift, the Bank of Russia maintains its stance that crypto is not a valid means of payment and proposes strict penalties for transactions occurring outside the experimental regime.
- The EPR will run for three years, allowing regulators to assess the impact of limited crypto adoption before deciding on further policy changes.
Why should you pay attention?
- This is the first major step by the Bank of Russia toward legal crypto investment, despite years of strict anti-crypto policies.
- The selective nature of the policy highlights a controlled approach, where wealthy and institutional investors are prioritized over retail traders.
- If successful, the EPR could pave the way for broader crypto adoption within Russia’s financial ecosystem.
- The move aligns with global trends including in the US, where governments are exploring regulated crypto markets rather than outright bans.
- Speculation is already growing that this could be a stepping stone for Russia to build a strategic Bitcoin reserve, similar to recent US initiatives.
Who said what?
- Bank of Russia’s official statement on the policy shift:
“In accordance with the instructions of the President of Russia, the Bank of Russia has sent proposals to the government for discussion on regulating investments in cryptocurrencies.”
- On the risks associated with crypto trading, the central bank noted:
“Private cryptocurrency is not issued or guaranteed by any jurisdiction, is based on mathematical algorithms, and is subject to increased volatility.”
- X user RunnerXBT speculated on a potential Bitcoin reserve strategy:
“In a few years: Russia to announce Bitcoin Strategic Reserve, no new net-buying of BTC, it’s all seized holdings. Sounds familiar?”
- X user Bald Research suggested that the move was designed for financial control:
“So they can regulate Bitcoin, just not for regular people? Interesting.”
Zooming out
- Russia has had a long and complex relationship with crypto, shifting between harsh restrictions, cautious acceptance, and strategic use cases.
- Russia initially viewed cryptocurrencies as a threat and proposed strict bans, even criminalizing crypto-related activities at one point.
- However, between 2018-2020, the country softened its stance, recognizing digital financial assets while still prohibiting crypto as a payment method.
- In 2021, the "On Digital Financial Assets" law came into force, officially banning Bitcoin payments while allowing licensed firms to issue digital tokens.
- In 2022, following economic sanctions due to geopolitical tensions, Russia explored using crypto for international trade to bypass SWIFT restrictions.
- The latest EPR policy shift marks the first structured framework for legal crypto investments, signaling Russia’s slow but strategic entry into the digital asset space.
