Russia Proposes Three-Year Crypto Trading Pilot for Qualified Investors

The Bank of Russia has put forth a proposal for a three-year experimental legal framework that would permit a select group of investors to engage in cryptocurrency trading. This initiative, unveiled on March 12, is aimed at regulating digital currencies and enhancing market transparency. The proposal, submitted to the Russian government for consideration, would extend crypto trading access to investors with at least $1.1 million in securities and deposits. This move signifies a potential shift in the country’s approach to digital asset regulations, although the central bank has emphasized that retail crypto payments will remain prohibited.

The experimental program is designed to establish regulatory standards for cryptocurrency service providers and to expand investment opportunities for experienced traders who are willing to accept heightened financial risks. The proposal includes provisions that allow qualified financial institutions to participate in the trial, suggesting that regulated companies could be permitted to invest in digital assets. This could open the door for Russian firms to adopt a Bitcoin accumulation strategy similar to that of Strategy (formerly MicroStrategy).

Under the proposed framework, direct crypto trading will be restricted to select investors. However, all qualified investors will have access to derivative financial instruments and securities tied to cryptocurrency values. The proposal also includes penalties for violations of the experimental regime, underscoring the central bank's commitment to maintaining strict controls on domestic transactions. The Bank of Russia has stated that it does not consider cryptocurrency as a means of payment. Therefore, it proposes to introduce a ban on settlements between residents on transactions with cryptocurrency outside the experimental legal regime, as well as establish liability for violating the ban. This stance aligns with the country’s existing restrictions on digital assets, as Russia banned crypto payments under its “On Digital Financial Assets” law, which took effect in January 2021.

The proposal comes as Russia continues to explore digital assets for international trade. In December 2024, Finance Minister Anton Siluanov confirmed that the country had been actively experimenting with crypto transactions for foreign trade under a separate experimental legal regime implemented in September 2024. If enacted, the framework could mark a significant step toward integrating digital assets into Russia’s financial system while maintaining strict controls on domestic transactions. The government has yet to formally approve the Bank of Russia’s proposal.