Bank of Russia Set to Legalize Cryptocurrency for ‘Qualified’ Investors

Bank of Russia, the nation’s central bank, is on the verge of a significant policy shift that could open the doors for a select group of investors to trade cryptocurrencies. In a recent interview with the Russian newspaper Izvestia, Alexey Guznov, the Bank of Russia’s state secretary and deputy governor, revealed that the central bank is exploring amendments to the law that would create a new category of “particularly qualified investors.”

The Bank of Russia is seriously considering the introduction of a new legal category that would allow a limited group of investors to engage in cryptocurrency trading. According to Guznov, this would be a significant step toward integrating digital assets into the Russian financial system. “There is currently a discussion about allowing a limited group of particularly qualified investors to trade digital currencies, enabling them to buy and sell such assets. However, this is a topic for the next stage. In the meantime, all potential risks need to be thoroughly analyzed,” Guznov stated.

Currently, there is no legal framework that defines who these “particularly qualified investors” would be. However, the Bank of Russia is reportedly considering legislative changes that would establish this new category. This could pave the way for a controlled and secure environment where only those with sufficient expertise and financial resources would be allowed to participate in the cryptocurrency market.

Bank of Russia Explores Stablecoin Use for Trade

The Bank of Russia is not just stopping cryptocurrencies; it is also showing a growing interest in the use of stablecoins for international trade. Guznov mentioned that if a stablecoin is backed by a responsible party and resembles digital financial assets that are centralized and tokenized, it could already be used for cross-border settlements under current Russian laws. This opens the door for stablecoins to play a more significant role in Russia’s international trade, provided they meet specific criteria set by the Bank of Russia.

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However, Guznov was clear that algorithmically managed stablecoins without a backing entity would be treated differently. These would be considered cryptocurrencies and would require an experimental regime to be used for cross-border transactions. This cautious approach reflects the Bank of Russia’s intent to carefully manage the risks associated with digital currencies while still exploring their potential benefits.

Bank of Russia Considers Domestic Crypto Exchanges

In another significant development, the Bank of Russia is reportedly considering the establishment of at least two domestic cryptocurrency exchanges. These exchanges could potentially use the infrastructure of existing traditional stock exchanges in Moscow and Saint Petersburg. The primary aim of these exchanges would not be to facilitate cryptocurrency trading but rather to develop stablecoins. These stablecoins could be pegged to the Chinese yuan or a basket of BRICS currencies, according to reports.

This move by the Bank of Russia shows its strategy to carefully control the introduction of digital currencies into the Russian economy. By focusing on stablecoins and creating a tightly regulated environment for qualified investors, the central bank aims to balance innovation with the need to maintain financial stability.

The potential changes being considered by the Bank of Russia could mark the beginning of a new era for cryptocurrency in Russia. With the introduction of a new category of particularly qualified investors and the exploration of stablecoins for international trade, the central bank seems poised to cautiously embrace digital currencies. However, as Alexey Guznov pointed out, all potential risks need to be thoroughly analyzed before any final decisions are made.

Stay connected to The BIT Journal for more updates as the Bank of Russia continues to explore these developments.