Bank of Russia could legalize crypto for investors

The Bank of Russia is advancing plans to test cross-border crypto transactions for qualified investors. The central bank is considering legal amendments to create a new category of “particularly qualified investors,” allowing these individuals to trade digital currencies as Russia explores the use of cryptocurrencies for international trade.

1. New Investor Category: The Bank of Russia is contemplating legislative changes to define a group of “particularly qualified investors” who could participate in crypto trading.
2. Stablecoin Use: The central bank is open to using stablecoins for cross-border trade if they meet specific criteria, particularly those backed by an obligated party.

These developments follow an interview with Alexey Guznov, deputy governor of the Bank of Russia, where he hinted at a potential shift in Russia’s approach to cryptocurrencies. Guznov emphasized that allowing this new group to trade digital currencies is still under discussion, with the need for thorough risk analysis. He also highlighted that stablecoins resembling digital financial assets could already be used under current laws, while algorithmically managed stablecoins would require an experimental regime. This comes as reports suggest Russia may establish domestic crypto exchanges, focusing on stablecoins pegged to the Chinese yuan and BRICS currencies.