The Bank of Russia is exploring the possibility of allowing a new category of “particularly qualified investors” to trade cryptocurrencies, signaling a shift in its stance on crypto regulations as the country investigates the use of digital currencies for cross-border transactions.
Alexey Guznov, state secretary and deputy governor of the Bank of Russia, disclosed these potential changes in a recent interview, indicating the central bank’s openness to certain crypto activities under strict regulatory oversight.
The interview was published on Monday, August 26, 2024, in the Russian newspaper Izvestia. The legislative changes being considered would impact Russia’s financial sector, with the Bank of Russia also proposing the creation of domestic crypto exchanges in cities like Moscow and Saint Petersburg.
The move comes as Russia evaluates the potential of cryptocurrencies for international trade, particularly stablecoins that meet specific criteria. The idea is to allow limited crypto trading for a select group of investors, helping Russia navigate international sanctions and increase its access to alternative financial systems for cross-border transactions.
The Bank of Russia is considering drafting new laws to define the “particularly qualified investors” category. These individuals would be allowed to buy and sell digital assets within a regulated environment. However, before any steps are taken, the central bank plans to thoroughly assess the risks associated with cryptocurrency trading.
Guznov emphasized that certain stablecoins, backed by an obligated party and structured similarly to Russia’s digital financial assets, could be used in international settlements under current law. However, algorithmically managed stablecoins, which lack a clear backing entity, would require an experimental regulatory framework for cross-border usage.
Additionally, Russia is contemplating the establishment of two domestic crypto exchanges, possibly utilizing the infrastructure of existing stock exchanges in Moscow and Saint Petersburg. The primary focus of these exchanges would be to facilitate the development of stablecoins, potentially pegged to currencies like the Chinese yuan and a basket of BRICS currencies, further integrating cryptocurrency into Russia’s economic strategy.
