Summary
- The Bank of Russia has introduced a draft directive allowing non-qualified investors to purchase cryptocurrencies through brokers, limited to 300,000 rubles annually.
- Only Bitcoin, Ethereum, and Tether's USDT are authorized for public trading.
- Qualified investors face no such restrictions, although all investors must first complete a risk assessment.
The Bank of Russia has unveiled its first regulatory framework aimed at enabling everyday investors to trade cryptocurrencies on public exchanges.
On August 11, the central bank released a draft directive that permits non-qualified investors to acquire digital assets via brokers, crypto exchanges, or asset managers, albeit with an annual limit.
The central bank explained, "We are instituting a limit on cryptocurrency purchases for non-qualified investors. Through each intermediary—whether a broker, crypto exchanger, or manager—they will be able to acquire assets up to 300,000 rubles annually," according to a separate announcement.
Approved Cryptocurrencies: Only Three
The directive specifies three cryptocurrencies that are eligible for public trading: Bitcoin, Ethereum, and Tether’s USDT. This limited selection is linked to a recent law enacted this month. "The list of digital currencies that trading organizers can permit for public circulation on organized trading platforms (hereinafter referred to as the ‘List’) includes: Bitcoin (Bitcoin), Ethereum (Ethereum), Tether USDT (Tether USDT)," the announcement states.
The criteria for inclusion are based on liquidity and historical performance. According to the new federal law on digital currencies, a cryptocurrency must have a substantial market capitalization, consistent daily trading volume, and at least five years of pricing history on foreign exchanges to qualify. "To safeguard non-qualified investors from drastic and unpredictable price swings, only the most liquid cryptocurrencies will be accessible to them," the bank added.
The directive explicitly mentions the purchase cap. "The maximum total value of digital currencies acquired through a broker in a calendar year is set at 300,000 rubles," states Article 2 of the directive.
Notably, XRP, the cryptocurrency developed by Ripple in 2012, has not been included in this approved list. Although it appears to meet the established criteria, XRP has faced regulatory challenges over the years, including a resolved SEC lawsuit against Ripple, which led to its temporary delisting and subsequent relisting on various exchanges, potentially influencing its exclusion.
Access for Retail Investors, Freedom for Wealthier Ones
In contrast, qualified investors—typically more affluent and accredited individuals—are not subject to these limitations. "Qualified investors will be able to acquire all cryptocurrencies available for trading on exchanges and over-the-counter markets without restrictions," the announcement clarifies. However, all investors, regardless of their status, must complete a risk assessment before engaging in trading. "All investors will need to pass testing and familiarize themselves with the risks associated with investing in cryptoassets," the bank noted.
This initiative follows earlier actions by the central bank to facilitate crypto trading for wealthier investors and comes at a time when Tether's operations are under scrutiny, particularly as the stablecoin issuer has frozen millions in USDT linked to sanctioned Russian exchanges.
The Bank of Russia is accepting public comments on the draft until August 24, and the directive will take effect ten days after its official publication, which will be signed by Governor Elvira Nabiullina.