Russia is considering implementing a domestic crypto exchange under a pilot model, opening up the possibility of legalizing part of the domestic cryptocurrency market. However, this proposal comes with very strict regulations and is only for 'super professional' investors. Is this a strategic move for Russia to leverage crypto in a tense geopolitical context, or just a risky experiment?
Pilot Crypto Trading Under a Special Framework
According to the Interfax-Ukraina news agency, the Ministry of Finance of Russia and the Central Bank #Nga (CBR) are considering launching a domestic cryptocurrency exchange under a special legal framework (ELR). This model is designed to create a safe and controlled trading environment.
Aleksey Yakovlev, Director of Financial Policy at the Ministry of Finance, stated that this plan is still in the discussion phase. Two key factors need to be assessed before moving towards official implementation:
The feasibility of the project in the current legal context.
Risk control, including investor protection and ensuring national financial security.
If these factors are adequately addressed, the Ministry of Finance may present an official proposal to the Government.
For 'Super Professional' Investors Only
A noteworthy point in this proposal is that only 'super professional' investors will be allowed to participate in trading. This concept is still being refined but is expected to require stringent criteria to minimize risks to the financial system and monetary policy.
Currently, Russia has regulations for professional investors, requiring them to possess at least 12 million rubles (~125,000 USD). However, under the new plan, the minimum asset threshold for 'super professional' investors will double to 24 million #ruble (~250,000 USD) by 2026. This group will include financial institutions and individuals with substantial assets.
This is a move that shows Russia has no intention of expanding the crypto market to the public, but rather wants to control and experiment within a certain scope.
Crypto Recognized But Not Allowed for Domestic Circulation
Currently, Russia still does not have an official domestic crypto exchange. Although the law signed by President Vladimir Putin in November 2024 recognized digital assets as legal, crypto is only allowed to be used in international transactions, not for domestic payments.
Russian citizens can own and trade crypto through foreign exchanges, but the government has not yet licensed any domestic exchanges.
However, on September 1, 2024, the Central Bank of Russia initiated a pilot program allowing crypto transactions in international transactions. Accordingly, some intermediaries are allowed to carry out crypto transactions through the National Payment System. This is seen as a stepping stone for expanding the use of cryptocurrency in Russia.
Russia and the Ambition to 'Break Free' from USD Control
Russia's acceleration of legalizing crypto is not just about financial management, but also a strategy to cope with Western sanctions.
President Vladimir Putin has publicly criticized the U.S. for using the USD as a political tool, forcing many countries to seek alternative assets. He has also openly supported $BTC , emphasizing that 'no one can ban Bitcoin', indicating that Russia is considering crypto as a more flexible international payment solution.
In addition, Russia has also enacted laws to control cryptocurrency mining activities, including a complete ban or seasonal restrictions, effective from 01/01/2025 and lasting for 6 years.
An Important Step But Still Many Barriers
Although the pilot plan for a domestic crypto exchange shows that Russia is moving closer to legalizing part of the cryptocurrency market, this project still faces many risks:
🔹 Financial risk management: Without a strict monitoring system, the crypto market could negatively impact the national monetary system.
🔹 Cooperation with international organizations: Currently, Russia is facing many sanctions from the West, and expanding the use of crypto could subject the country to closer scrutiny.
🔹 Liquidity and domestic acceptance: If the pilot exchange is limited to the 'super professional' investor group, the market will have poor liquidity, making it difficult to scale.
Conclusion: Could Crypto Become Russia's Strategic Tool?
Despite many barriers remaining, the fact that Russia is considering a pilot for domestic crypto transactions shows that the government is serious about digital assets. If the plan is successfully implemented, Russia could become one of the leading countries in utilizing crypto as a strategic financial tool.
However, with strict regulations and limitations only for 'super professional' investors, it seems that Russia is not yet ready for crypto to become part of the mainstream economy.
🚨 Risk Warning: Investing in cryptocurrency always carries significant risks and is not suitable for everyone. Investors need to conduct thorough research before participating in the market. #anhbacong