According to recent reports, Russian Finance Minister Anton Siluanov announced plans to launch a dedicated crypto exchange aimed at “highly qualified investors” in the country.
This initiative, developed in collaboration with the Central Bank of Russia, seeks to legitimize cryptocurrency transactions and bring operations into a regulated framework.
Experimental Legal Regime For Crypto Exchange In Russia
During an expanded board meeting of the Finance Ministry, Siluanov stated, “Together with the Central Bank, we will launch a crypto exchange for highly qualified investors. This will legalize crypto assets and bring crypto operations out of the shadows.” However, he clarified that this exchange will operate under an experimental legal regime (ELR) and not within the domestic market.
The groundwork for this initiative was laid when a law allowing the Central Bank to initiate a pilot program for foreign trade participants to conduct settlements in virtual assets came into effect on September 1 of last year.
On March 11, the Central Bank proposed to expand the scope of digital asset transactions within the ELR to include a new category of investors: highly qualified investors.
This designation is expected to apply to individuals or entities whose investments in securities and deposits exceed 100 million rubles (approximately $1.3 million), or whose annual income surpassed 50 million rubles (around $650,000).
Deputy Director of the Finance Ministry’s Financial Policy Department, Osman Kabaloev, acknowledged during the Blockchain Forum that the precise criteria for defining these highly qualified investors are still under discussion. He emphasized the importance of engaging with parliament members who have expressed interest in participating in this process.
Central Bank Seeks To Regulate Digital Investment
In a letter to the government, the Central Bank also recommended that, outside of the ELR, all qualified investors should have the ability to invest in settlement-based derivative financial instruments and securities linked to cryptocurrency values, even if they do not involve the actual delivery of digital assets.
However, the Central Bank maintains its position of not recognizing digital assets as a legal means of payment. Consequently, it has proposed a ban on cryptocurrency transactions between residents outside of the ELR framework, along with penalties for those who violate this prohibition.
In March, Deputy Finance Minister Ivan Chebeskov indicated that existing exchange infrastructure could facilitate cryptocurrency trading within the ELR.
The government is also considering the inclusion of new trading platforms and participants, albeit under stringent licensing conditions. Chebeskov noted that this experimental phase is not expected to commence for at least another six months.
Currently, while Russian citizens are allowed to purchase and hold crypto, the use of these digital assets for payments within the country remains illegal. The lack of a centralized Russian cryptocurrency exchange means that residents can only buy digital currencies through foreign trading platforms.
Featured image from DALL-E, chart from TradingView.com
