Russia Greenlights Crypto Experiment: Exclusive Bitcoin Trading for Select Investors!

Russia Greenlights Crypto Experiment

The Bank of Russia is considering a three-year pilot program that would allow a select group of Russian investors to trade cryptocurrencies under a controlled framework.

On March 12, the Russian central bank announced its proposal to permit a “limited circle of Russian investors” to buy and sell cryptocurrencies like Bitcoin. According to the statement, the initiative aligns with directives from the Russian President and has been submitted to the government for discussion on crypto investment regulations.

A New Legal Framework for Qualified Investors

Under the proposed framework, crypto trading would be restricted to investors with a minimum of $1.1 million in securities and deposits. To ensure compliance, the Bank of Russia also suggested implementing penalties for violations of the experimental regime.

Despite this new approach, the country maintains its firm stance against crypto payments. The central bank reaffirmed that Russian residents are still prohibited from using cryptocurrencies for transactions.

Crypto Payments Remain Strictly Prohibited

Russia initially banned cryptocurrency payments under its “On Digital Financial Assets” law, which took effect in January 2021. In its latest proposal, the Bank of Russia reiterated its opposition to crypto as a payment method:

“The Bank of Russia does not recognize cryptocurrency as a means of payment. Therefore, it proposes to introduce a ban on transactions between residents using cryptocurrency outside the experimental legal framework, as well as establish penalties for violations.”

While domestic crypto payments remain illegal, the Russian government has been open to using cryptocurrency for international trade since 2022. In December 2024, Finance Minister Anton Siluanov confirmed that Russia was actively experimenting with crypto in foreign trade under a separate legal framework introduced in September 2024.

Regulatory Goals: Transparency and Risk Awareness

The Bank of Russia stated that the primary goal of the experimental program is to enhance transparency in the local cryptocurrency market. The initiative aims to establish regulatory standards for crypto service providers while expanding investment opportunities for experienced investors who understand the risks involved.

The central bank has repeatedly warned about the volatility and risks associated with private cryptocurrencies, emphasizing that they are not issued or backed by any government:

“Cryptocurrencies are based on mathematical algorithms and are highly volatile. Investors choosing to invest in crypto should be fully aware of the potential risks of financial loss.”

A “Russian MicroStrategy” on the Horizon?

Interestingly, the proposal also includes provisions for certain financial institutions to participate in the experiment. The Bank of Russia indicated that it would set specific regulatory requirements for companies interested in investing in crypto, based on the asset’s risk profile.

This move could potentially pave the way for a Russian equivalent of MicroStrategy—a company that aggressively accumulates Bitcoin as a strategic asset. Since 2020, several global firms, including Tesla, Japan’s Metaplanet, and Brazilian fintech Meliuz, have followed the Bitcoin investment strategy championed by Michael Saylor’s firm, now known as Saylor’s Strategy.

Beyond the experimental regime, qualified investors will still be able to gain exposure to cryptocurrency through derivative financial instruments, such as securities and digital financial assets tied to crypto prices.

While Russia’s broader crypto regulations remain restrictive, this experimental regime signals a measured yet significant shift in the country’s approach to digital asset investments.