Russia’s Central Bank Proposes Controlled Crypto Trading for Wealthy Investors

The Central Bank of Russia has introduced a proposal that could significantly alter the country’s approach to cryptocurrency trading. The plan suggests a three-year experimental period where select investors and institutions would be allowed to legally buy and sell digital assets. According to a Reuters report, the initiative would permit qualified entities, including wealthy individuals and companies, to participate in controlled cryptocurrency transactions. This marks a potential shift in Russia’s stance on digital assets, which have faced strict regulations in the past.

The primary goal of the initiative is to introduce greater transparency into cryptocurrency transactions while mitigating financial risks. The central bank has historically maintained a cautious stance on digital assets, citing concerns over financial instability and illicit activities. However, the latest proposal suggests a willingness to test limited participation, allowing the government to monitor the impact of cryptocurrency trading within a controlled environment. Participants would be expected to adhere to strict compliance measures, ensuring their involvement aligns with the country’s financial regulations.

This potential shift comes after years of restrictive policies. In July 2020, Russia implemented legislation that banned the use of cryptocurrencies like Bitcoin (BTC) for purchasing goods and services. However, geopolitical and economic pressures—particularly the severe sanctions imposed by the United States and its allies due to Russia’s ongoing conflict with Ukraine—have forced the country to reconsider its stance. In September, Russian authorities approved a law permitting legal entities and registered entrepreneurs to mine digital assets, further signaling a gradual shift toward greater crypto adoption.

Additionally, reports indicate that Russia is exploring ways to integrate its National Payment Card System (NSPK) with cryptocurrency transactions. The NSPK, fully owned by the Russian central bank, was sanctioned by the U.S. Treasury Department in February 2024, limiting its international functionality. This move toward controlled crypto trading may be part of Russia’s broader strategy to strengthen its financial autonomy amid Western sanctions. If successful, the initiative could pave the way for more extensive cryptocurrency regulations in Russia, setting a precedent for a gradual embrace of digital assets under strict government oversight.