Russia’s Central Bank is progressing with plans to potentially legalize cryptocurrency trading for a specific group of qualified investors. The central bank is considering amending the law to introduce a new category of “particularly qualified investors” who would be permitted to trade digital currencies as part of the nation’s exploration of cryptocurrencies for cross-border transactions.
In an interview with the Russian newspaper Izvestia on Monday, August 26, Alexey Guznov, the Bank of Russia’s state secretary and deputy governor, revealed the central bank’s potential shift in its stance on cryptocurrencies. Guznov stated that the bank is contemplating allowing a limited group of these specially qualified investors to engage in the buying and selling of cryptocurrencies.
“There is currently a discussion about allowing a limited group of particularly qualified investors to trade digital currencies, enabling them to buy and sell such assets. However, this is a topic for the next stage. In the meantime, all potential risks need to be thoroughly analyzed,” Guznov said.
At present, no legal framework defines these investors, but the central bank is reportedly considering legislative changes to establish this new category.
Exploring Stablecoins for International Trade
The central bank is also exploring the use of stablecoins for international trade, provided they meet specific criteria. Guznov indicated that stablecoins backed by an obligated party, resembling digital financial assets issued in Russia, could be used for cross-border settlements under existing laws. However, algorithmically managed stablecoins without a backing entity would be treated as cryptocurrencies, requiring an experimental cross-border-use regime.
Guznov’s comments follow reports that Russia is considering the establishment of at least two domestic crypto exchanges. These exchanges, potentially utilizing the infrastructure of traditional stock exchanges in Moscow and Saint Petersburg, aim not to facilitate crypto trading but to develop stablecoins. These stablecoins could be pegged to the Chinese yuan and a basket of BRICS currencies, reflecting Russia’s broader interest in integrating digital assets into its financial system.
This potential shift marks a significant development in Russia’s approach to cryptocurrencies, signaling a cautious yet strategic move towards integrating digital assets into its economy.
