The Bank of Russia has proposed a directive allowing retail investors to trade Bitcoin, Ethereum, and USDT with a cap of 300,000 rubles annually.
Summary
- The Bank of Russia has proposed a directive allowing retail investors to trade cryptocurrencies up to an annual limit of 300,000 rubles.
- Only Bitcoin, Ethereum, and Tether's USDT are approved for public trading.
- Qualified investors can trade without restrictions, but all investors must complete a risk assessment.
The Bank of Russia has taken a significant step in regulating cryptocurrency trading for retail investors by releasing a draft directive aimed at enabling non-qualified investors to trade digital assets on public exchanges.
On August 11, the central bank announced that non-qualified investors would be allowed to purchase cryptocurrencies through brokers, crypto exchanges, or asset managers, though with a cap on annual purchases set at 300,000 rubles.
A spokesperson for the bank stated, "We are instituting a limit on cryptocurrency purchases for non-qualified investors. Through each intermediary, they will be able to acquire assets up to 300,000 rubles annually."
Limited Cryptocurrency Selection
The list of cryptocurrencies permitted for public trading is restricted to three: Bitcoin, Ethereum, and Tether's USDT. This limitation aligns with a recent law enacted in August, which stipulates that only digital currencies meeting specific criteria can be traded publicly.
To qualify, a cryptocurrency must demonstrate substantial market capitalization, consistent daily trading volumes, and a pricing history of at least five years on international exchanges. The central bank emphasized that this approach is designed to protect non-qualified investors from volatile price fluctuations.
Notably, XRP, despite meeting the criteria, has been excluded from the approved list due to past regulatory issues, including its recent legal battles with the SEC.
Investor Categories and Risk Assessments
Qualified investors, who are usually more affluent, will not face these trading restrictions and can access all cryptocurrencies available on exchanges. However, all investors, regardless of their classification, must complete a risk assessment before trading. The bank pointed out that this measure is to ensure that investors are aware of the risks involved in cryptocurrency investments.
This regulatory move follows previous initiatives by the Bank of Russia to facilitate crypto trading for wealthier investors and comes amid ongoing scrutiny of Tether, particularly concerning its operations linked to sanctioned Russian exchanges.
The public comment period for the draft directive runs until August 24, with the final version expected to be published shortly thereafter, pending approval from Governor Elvira Nabiullina.
