Russia Moves Toward Retail Crypto Access with New Regulatory Bill

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TLDR

Russia is drafting a bill to allow broader retail access to cryptocurrencies for everyday investors.
The proposed legislation will remove crypto from special regulatory categories, integrating it into the financial system.
Non-qualified investors will be allowed to buy up to 300,000 rubles worth of digital assets under the new framework.
The Bank of Russia has proposed a risk-awareness test for investors before they can participate in crypto trading.
The bill includes provisions for using cryptocurrencies in cross-border settlements and issuing tokens for foreign markets.

Russia is preparing to allow broader retail access to cryptocurrencies as lawmakers draft new legislation. The bill aims to remove crypto from a special regulatory category and integrate it into the financial system. This shift signals a change in Russia’s stance on digital assets, allowing everyday investors to participate with certain limitations.

Russia’s Legislative Shift Towards Crypto Inclusion

Russian lawmakers are preparing a bill that would normalize cryptocurrencies within the country’s financial system. Anatoly Aksakov, chairman of the State Duma’s Committee on Financial Markets, stated that the draft bill is ready for consideration. The proposed legislation would allow non-qualified investors to purchase cryptocurrencies, subject to a 300,000 ruble cap, approximately $3,800.

The bill is set to remove cryptocurrencies from the special financial regulations that have previously restricted their use. This move aims to make digital assets more integrated into Russia‘s broader economy. Lawmakers believe this change will make cryptocurrency ownership and transactions more commonplace for Russian citizens, moving away from the experimental nature it previously held.

Limitations on Retail Participation and Investor Protections

The new bill would allow retail investors to buy cryptocurrencies but with clear limitations. Non-qualified investors will be able to purchase up to 300,000 rubles worth of digital assets. While the market is not fully liberalized, the bill is seen as an important step towards broader public access to crypto.

Lawmakers are careful to implement safeguards to protect retail investors. The Bank of Russia has previously warned that unrestricted access to crypto could lead to systemic risks. To mitigate this, the central bank proposed a model requiring investors to pass a risk-awareness test before participating in crypto trading.

The proposed legislation also includes provisions for cross-border settlements using cryptocurrencies. Russia’s lawmakers hope the bill will facilitate the use of digital assets in international trade. Additionally, the bill would allow for the issuance of tokens that could be traded on foreign markets, aligning with Russia’s efforts to explore alternatives to traditional financial systems.