Russia’s central bank set to legalize crypto for qualified investors

The Central Bank of Russia appears set to move forward with plans to test cross-border crypto transactions for qualified investors.

The Central Bank of Russia is considering changing the law to introduce a new category of “especially qualified investors” that would allow them to trade cryptocurrencies as the country explores the use of cryptocurrencies in cross-border transactions.

On Monday, in an interview published in the Russian newspaper Izvestia on August 26, Alexey Guznov, the state secretary and deputy chairman of the Central Bank of Russia, hinted at a possible shift in the country’s stance on cryptocurrencies. Guznov explained that the central bank is considering the possibility of allowing a limited number of private investors to participate in the trading of cryptocurrencies.

“There is currently a discussion about allowing a limited group of qualified investors to trade digital currencies and allowing them to buy and sell such assets. But this is a topic for the next stage. In the meantime, all potential risks need to be thoroughly analyzed.”

Alexey Guznov, State Secretary and Deputy Chairman of the Central Bank of Russia

There is currently no legal framework defining these investors, but the central bank is reportedly considering legal changes to create this new category.

The central bank also suggests that it is open to using stablecoins for international trade if they meet certain criteria. According to Guznov, if a stablecoin is backed by an obligated party and resembles digital financial assets (centralized, tokenized assets issued in Russia), then it can already be used for cross-border payments under existing law. However, algorithmically managed stablecoins without a backing institution will be considered cryptocurrencies and will require an experimental regime for cross-border use, he added.

Guznov’s comments come shortly after reports emerged that Russia was considering setting up at least two local crypto exchanges, potentially using the infrastructure of traditional exchanges in Moscow and Saint Petersburg. But the primary purpose of these exchanges is not to facilitate crypto trading, but to develop stablecoins, including those pegged to the Chinese yuan and a basket of BRICS currencies.