Russia’s Central Bank to Legalize Crypto for Qualified Investors

Russia’s Central Bank Eyes Legalization of Cryptocurrency for Qualified Investors

In a recent interview published on Monday, Aug. 26, by the Russian newspaper Izvestia, Alexey Guznov, the Bank of Russia’s state secretary and deputy governor, hinted at a potential shift in Russia's approach to cryptocurrencies. Guznov disclosed that the central bank is actively considering legislative changes to introduce a new category of qualified crypto investors who would be authorised to buy and sell digital assets under the revised framework.

Currently, there is no specific legal framework in Russia defining these "particularly qualified investors," but the Bank of Russia crypto regulations are expected to evolve to accommodate this new class of investors. This move could significantly impact how cryptocurrencies are perceived and traded within the country, as Russia continues to explore the use of digital assets for cross-border cryptocurrency transactions.

In addition to this, the central bank is showing increased openness to the use of stablecoins for international trade, provided they meet certain criteria. Guznov mentioned that if a stablecoin is backed by an obligated party and resembles digital financial assets—centralised, tokenised assets issued within Russia—it can already be used for cross-border settlements under existing laws. However, algorithmic stablecoins that lack a backing entity would be classified as cryptocurrencies and would require an experimental regime for cross-border use, reflecting the central bank's cautious approach to these assets.

Guznov’s comments come shortly after reports surfaced indicating that Russia is considering the establishment of at least two domestic crypto exchanges, potentially utilizing the infrastructure of traditional stock exchanges in Moscow and Saint Petersburg. These exchanges are not primarily intended to facilitate widespread crypto trading but rather to develop and manage stablecoins, including those pegged to the Chinese yuan and a basket of BRICS currencies.

As Russia's crypto landscape evolves, these developments could position the country as a significant player in the global digital assets market, particularly in the realm of cross-border cryptocurrency transactions and crypto legislation changes in 2024.