Russian Central Bank Governor Advocates for Tightened Cryptocurrency Prohibition

In a significant move, the Russian Central Bank Governor, Elvira Nabiullina, has announced plans for a cryptocurrency ban that will prohibit transactions between residents unless conducted within Russia's experimental legal framework.

Nabiullina emphasized the need for penalties against those who bypass the proposed ban, stating that consequences for individuals or entities using digital assets as a means of payment outside the approved legal framework will be in place. This announcement comes after Vladimir Chistyukhin, First Deputy Chairman of the Bank of Russia, warned about the dangers of cryptocurrency transactions, calling them an "extremely risky activity."

The discussions focus on limiting participation to "super-qualified" investors who meet strict criteria for financial expertise and risk tolerance. To qualify, applicants must meet strict criteria that align with existing financial market qualification standards. The experimental framework aims to establish standards, improve transparency, and assess investor qualification criteria.

The Bank of Russia suggests that cryptocurrency investments should be tested within this experimental framework. The experimental legal regime (ELR) is currently being discussed between Russia's Ministry of Finance and the Central Bank. The Russian authorities involved in expanding the requirements for "super-qualified" investors for access to the Russian cryptocurrency market on January 1 of the next year include governmental regulatory bodies and specific appointed officials; however, the exact names of these authorities and individuals are not explicitly detailed in the available search results.

Previously, the Central Bank's head stated that it was time to advance Russia's approach to cryptocurrencies. The "super-qualified" investor category will be open to both professional market participants and individuals, not just banks. Unqualified investors must be protected from cryptocurrency transactions as much as possible, according to Chistyukhin. Currently, qualified investors must have a minimum financial threshold of 12 million rubles, but this requirement will increase to 24 million rubles starting January 1 of next year.

This move towards a more regulated cryptocurrency market in Russia follows a global trend of governments seeking to balance the potential benefits of blockchain technology with the need to protect consumers and maintain financial stability. As the situation develops, it is expected that more details will be revealed about the exact nature of the experimental legal framework and the criteria for "super-qualified" investors.