Russia Gets Serious About Crypto, Plans State Exchange Rollout

Source Bitcoinist

Russian authorities intend to launch a cryptocurrency exchange for the country’s highest-net-worth investors only, a change of direction for the country in handling digital assets.

Central Bank Relaxes Stance On Digital Currency Market

Finance Minister Anton Siluanov announced in a ministry board meeting that his ministry will cooperate with the Central Bank of Russia to open a cryptocurrency trading platform. This exchange will have an experimental legal framework and cater to only “highly qualified investors.” Siluanov explained that this is meant to “legalize crypto assets and bring crypto operations out of the shadows.”

The announcement represents a significant shift in Central Bank policy, which has long opposed the adoption of cryptocurrency. The bank had put forward a proposal on March 11 to the government to allow for cryptocurrency trades by a new set of investors who are very well off.

Only The Ultra-Wealthy Need Apply

According to reports, the government is set to limit access to this new crypto exchange to persons of outstanding wealth. The Central Bank suggested that “highly qualified investor” status would be reserved only for those whose investments in securities and deposits are over 100 million rubles (around $1 million), or whose incomes for the last year were in excess of 50 million rubles (around $500,000).

Osman Kabaloev, Financial Policy Department’s Deputy Director in the Finance Ministry, told the Blockchain Forum that the qualification requirements are still up for debate. “We are still debating these matters. And we also expect active discussion with deputies,” he said, adding that MPs have shown interest in taking an active part in the development.

Strict Rules Will Govern New Trading Platform

Experimental legal framework (ELF) for cryptocurrencies started forming once a law to allow the Central Bank to test a pilot for foreign settlements using cryptocurrency went into effect last year on September 1.

Deputy Finance Minister Ivan Chebeskov suggested in March that current exchange infrastructure could be used as the basis for cryptocurrency trading under the experimental model. He also spoke about opening up for new players and trading platforms, but subject to certain licensing conditions. Chebeskov warned that the experiment would not start for at least another six months.

Cryptocurrency Still Not Legal For Regular Payments

In spite of this opportunity for high-net-worth investors, the Central Bank is still against cryptocurrency being accepted as a means of payment in Russia. The bank has recommended prohibition of settlements among residents in cryptocurrency outside the test legal framework and wishes to institute sanctions for infractions.

Now, Russian citizens are allowed to buy and own cryptocurrency legally but are not allowed to use it for payments in Russia. Russians have to rely on foreign exchange platforms since there is no centralized Russian crypto exchange.

Featured image from Unsplash, chart from TradingView

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
Gold price hits two-week high as USD declines on deteriorating US fiscal outlookGold price (XAU/USD) prolongs the uptrend for the fourth consecutive day and climbs to a nearly two-week high, around the $3,344-3,345 area during the Asian session on Thursday.
Author  FXStreet
7 hours ago
Gold price (XAU/USD) prolongs the uptrend for the fourth consecutive day and climbs to a nearly two-week high, around the $3,344-3,345 area during the Asian session on Thursday.
placeholder
Shiba Inu’s Shibarium Struggles As New Accounts Crash To Fresh LowsFollowing its launch by the Shiba Inu team back in August 2023, the Shibarium network has been subject to the highs and lows of the market.
Author  NewsBTC
7 hours ago
Following its launch by the Shiba Inu team back in August 2023, the Shibarium network has been subject to the highs and lows of the market.
placeholder
GBP/USD falls to near 1.3400 following mixed UK PMI dataGBP/USD is depreciating after the mixed S&P Global/CIPS UK Manufacturing Purchasing Managers’ Index (PMI) data was released on Thursday. The pair has maintained its position near 1.3468, the highest since February 2022, reached on Wednesday, and is trading around 1.3410 during the European hours.
Author  FXStreet
7 hours ago
GBP/USD is depreciating after the mixed S&P Global/CIPS UK Manufacturing Purchasing Managers’ Index (PMI) data was released on Thursday. The pair has maintained its position near 1.3468, the highest since February 2022, reached on Wednesday, and is trading around 1.3410 during the European hours.
placeholder
EUR/USD briefly dips as Eurozone PMIs unexpectedly declineEUR/USD faces selling pressure and falls to near 1.1310 during European trading hours on Thursday. The major currency pair drops as the Euro (EUR) underperforms after the release of the surprisingly weak preliminary Eurozone HCOB Purchasing Managers’ Index (PMI) data for May.
Author  FXStreet
8 hours ago
EUR/USD faces selling pressure and falls to near 1.1310 during European trading hours on Thursday. The major currency pair drops as the Euro (EUR) underperforms after the release of the surprisingly weak preliminary Eurozone HCOB Purchasing Managers’ Index (PMI) data for May.
placeholder
AUD/JPY falls below 92.50, further downside appears due to rising odds of BoJ rate hikesAUD/JPY hits a fresh two-week low, with trading around 92.30 during the European hours on Thursday.
Author  FXStreet
8 hours ago
AUD/JPY hits a fresh two-week low, with trading around 92.30 during the European hours on Thursday.
goTop
quote