Russian Finance Ministry Official Confirms Domestic Crypto Trading Experiment Under Discussion

Officials within the Russian financial sector have begun discussing establishing an experimental law for cryptocurrency exchanges in Russia. 

The proposed framework exists at an initial development stage where it is evaluated by the Finance Ministry and the Bank of Russia. For several months the government has analyzed cryptocurrency regulations through multiple perspectives regarding domestic and international transactions.

Plans for an experimental trading regime

Russian Deputy Finance Minister Alexei Yakovlev spoke about the potential experiment during a financial forum hosted by the Expert RA credit rating agency. He explained that the initiative would allow confident investors to trade cryptocurrencies under strict conditions. However, the proposal has not yet been finalized, and the ministry has evaluated the risks before presenting them to the government.

The experiment would require an approved legal framework, specialized investors, and measures to mitigate financial risks. While there is no official definition of “super-qualified” investors, Yakovlev suggested that they could include individuals with extensive expertise in financial markets. Current regulations define qualified investors as assets worth at least 12 million rubles ($133,111), a threshold set to increase to 24 million rubles next year.

Ongoing efforts to regulate domestic Crypto trading

Russia has long been exploring ways to regulate cryptocurrency trading. Although it is legal for citizens to buy and own digital assets, trading remains gray. Some exchanges continue to operate without clear regulations. Authorities have proposed establishing state-controlled exchanges in Moscow and St. Petersburg to bring more oversight to the industry.

In July, the government approved legislation experimentally allowing cryptocurrency use in international settlements. The law also included provisions for licensing crypto exchanges, but only for select investors. While Yakovlev’s predecessor opposed experimental regimes, the new approach suggests a more structured attempt to integrate digital assets into the financial system.

Challenges and Bank involvement in the Crypto sector

Russia needs to overcome multiple barriers that prevent the use of cryptocurrency for international financial operations. The examination capabilities of Blockchain pose a challenge for financial constraint circumvention since all movements get recorded. Lawyer Alexander Nektorov explained authorities gain the ability to monitor crypto fund transactions while occasionally revealing wallet ownership information.

Central Russian banks, including Sberbank, VTB, and Alfa-Bank, are willing to participate in the domestic trading experiment. State-controlled Sberbank has also volunteered for the initiative. Meanwhile, Russia’s plan to launch a central bank digital currency (CBDC) has been delayed. Experts argue that a CBDC could help reduce the impact of sanctions, but the lack of international partners limits its effectiveness.

Deputy Finance Minister Vladimir Kolychev recently confirmed that Russia does not intend to establish a national cryptocurrency reserve. He stated that digital assets are too volatile for such a purpose. Instead, the National Welfare Fund continues to hold a mix of 40% Chinese yuan and 60% gold.

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