Bank of Russia May Open Cryptocurrency Market to Qualified Investors

• Experimental regime for qualified investors
• Investment opportunities without direct ownership
• Cryptocurrencies are not yet a legal means of payment

The Bank of Russia is evaluating the possibility of allow that qualified investors can acquire cryptocurrencies under a new legal regime, which is in the experimental phase. This regime is being developed under the guidelines of President Vladimir Putin and its main objective is to regulate investments in crypto assets.

An experimental legal regime, called the EPR (Special Proof Regime), has been proposed to be implemented over three years. The purpose of the EPR is to serve as a testing ground for cryptocurrency regulations, providing a controlled environment where associated risks can be observed and managed effectively.

Investors who are eligible to participate in this scheme are primarily those with significant assets, including individual investors who hold more than 100 million rubles in securities and deposits, or an annual income of more than 50 million rubles. In addition, qualified corporate investors and financial organizations are also included.

Financial institutions interested in investing in crypto assets will face specific regulatory requirements, which will be set by the Bank of Russia based on the risk level of each transaction. The EPR is intended to increase market transparency and establish service standards, while also offering new investment options for those with experience in the sector.

Additionally, within this regime, qualified investors will have the opportunity to invest in derivatives that are settled in cash, in addition to securities and digital financial assets that offer returns linked to the value of cryptocurrencies, without the need for direct ownership of the assets.

Despite these regulatory innovations, the central bank still maintains the position that cryptocurrencies should not be considered a legal means of payment within Russian territory.

Russia has also recently begun allowing the use of cryptocurrencies for international payments as a way to circumvent sanctions imposed by Western countries. This new legislation allows Russian companies to conduct international transactions using digital assets, although domestic payments remain prohibited.