Russian central bank proposes allowing limited crypto investments

MOSCOW/ISTANBUL

The Central Bank of Russia proposed to the government Wednesday that permission to carry out cryptocurrency transactions should be given only to "particularly qualified" investors, according to a statement.

A limited number of investors will be recommended to buy and sell cryptocurrencies in Russia, while a three-year trial period is forecast to be launched.

"This is a new status that citizens are expected to be able to obtain if their investments in securities and deposits exceed 100 million rubles ($1.1 million) or if their income for the past year was more than $575,000," it said.

The statement underlined that the Central Bank of Russia does not consider cryptocurrencies a means of payment, while it is proposed prohibiting individuals outside the trial period from making payments with cryptocurrencies.

"Therefore, investors, when deciding to invest in cryptocurrencies, must be aware that they are taking on the risks of potential loss of their funds," it noted.

"Outside of the experimental regime, it is planned to allow all qualified investors to invest in settlement derivatives, securities and digital financial assets that do not provide for the delivery of cryptocurrency to investors, but the return on which is tied to its value," it added.

A decree signed by Russian President Vladimir Putin in August legalized the experimental use of cryptocurrencies in international payments and Forex transactions.

MOSCOW/ISTANBUL

A limited number of investors will be recommended to buy and sell cryptocurrencies in Russia, while a three-year trial period is forecast to be launched.

"Therefore, investors, when deciding to invest in cryptocurrencies, must be aware that they are taking on the risks of potential loss of their funds," it noted.

A decree signed by Russian President Vladimir Putin in August legalized the experimental use of cryptocurrencies in international payments and Forex transactions.