The Russian Central Bank plans to establish a special three-year experimental legal system that allows limited groups to buy and sell cryptocurrencies

PANews reported on March 12 that according to the official announcement, the Russian Central Bank submitted a proposal to the government to regulate cryptocurrency investment for discussion in accordance with the instructions of the Russian president. The proposal suggests that a limited group of Russian investors allow for purchase and sale of cryptocurrencies. To this end, a special experimental legal system for three years is planned.

Only “specially qualified” investors can conduct cryptocurrency trading within the system. This is a new identity, and citizens expected to be able to obtain that status will meet the conditions for their securities and deposit investment of more than 100 million rubles, or their income of more than 50 million rubles last year. In addition, the proposal also recommends that companies that meet the status of qualified investors in current laws participate in the experiment. For financial institutions that want to invest in cryptocurrencies, the Russian Central Bank will set regulatory requirements based on the risk level and nature of such assets. The introduction of the above regime is intended to increase transparency in the cryptocurrency market, form service standards, and expand investment opportunities for experienced investors who are willing to take higher risks.

The Russian Central Bank has repeatedly pointed out that private cryptocurrencies are not issued or guaranteed by any jurisdiction, are based on mathematical algorithms and have high volatility. Therefore, when deciding to invest in cryptocurrencies, investors should be aware of the risk of potential capital losses. The Russian Central Bank still does not regard cryptocurrencies as a means of payment, so it proposes to also prohibit residents from using cryptocurrencies for settlement transactions outside the system and hold them accountable for violations of the ban. Outside the experimental regime, the program allows all qualified investors to invest in settlement financial derivatives, securities and digital financial assets that do not involve the delivery of cryptocurrencies to investors, but whose returns are pegged to the value of cryptocurrencies.