The Russian central bank is considering a new experimental regime to legally authorize select Russian investors to trade cryptocurrencies.

On March 12, the Bank of Russia announced a proposal to allow a “limited circle of Russian investors” to buy and sell cryptocurrencies like Bitcoin (BTC).

“In accordance with the instructions of the President of Russia, the Bank of Russia has sent proposals to the government for discussion on regulating investments in cryptocurrencies,” the announcement stated.

Proposing legalizing crypto trading for investors who have at least $1.1 million in securities and deposits, the Bank of Russia suggested introducing penalties for crypto transactions falling outside of the regime.

Retail crypto payments remain strictly banned

While considering accepting regulatory changes for crypto investment by rich investors, the Russian central bank reiterated that residents are not allowed to settle payments using cryptocurrency.

The ban on using cryptocurrencies like Bitcoin for payments in Russia was part of the country’s first crypto law, “On Digital Financial Assets,” which came into force in January 2021. In the new proposal, the central bank wrote:

“The Bank of Russia still does not consider cryptocurrency as a means of payment. Therefore, it proposes to also introduce a ban on settlements between residents on transactions with cryptocurrency outside the experimental legal regime, as well as establish liability for violating the ban.”

This is a developing story, and further information will be added as it becomes available.