Russia Moves to Open Cryptocurrency Market for Non-Qualified Traders

TLDR

• Russia is preparing legislation to allow non-qualified investors to trade cryptocurrencies.
• The bill will remove special financial regulations for crypto, making it more accessible.
• Non-qualified investors can buy up to 300,000 rubles worth of crypto, around $3,800.
• Retail investors must pass a risk-awareness test before trading cryptocurrencies.
• The legislation also aims to facilitate international crypto transactions and the use of Russian-issued tokens.

Russia is moving closer to opening its cryptocurrency market to non-qualified investors through new legislation. According to a report by TASS, the proposed changes will allow retail investors to engage in cryptocurrency trading with certain restrictions. Anatoly Aksakov, chairman of the State Duma’s Financial Markets Committee, confirmed the draft bill is ready for discussion during the spring parliamentary session.

Bill to Remove Special Financial Regulation for Cryptocurrencies

Aksakov stated that the draft bill will remove cryptocurrencies from special financial regulations. This will make them more accessible to the general public. “A bill has already been prepared that removes cryptocurrencies from special financial regulation, meaning they will become commonplace in our lives,” Aksakov said in a translated interview with Russia-24.

The new framework will allow non-qualified individuals to participate in crypto trading, though some limitations will still apply. Under the new law, non-qualified investors will be allowed to buy up to 300,000 rubles worth of crypto, which is about $3,800. This limit is set to ensure the market remains within safe boundaries for inexperienced investors. Professional traders will not  be subject to such restrictions, allowing them more freedom in their investments.

Regulated Access for Non-Qualified Investors

The Russian government has been preparing a framework to ease restrictions on retail participation in the crypto market. In December, the Bank of Russia proposed a system that would allow non-qualified investors to trade crypto after passing a risk-awareness test. This test aims to help individuals better understand the risks of crypto trading before they invest.

At the same time, Finance Minister Anton Siluanov announced that the Ministry of Finance and the central bank are working on a coordinated approach. They have indicated that imposing volume caps on retail transactions will be key to reducing systemic risks.

The central bank aims to prevent the use of anonymous or privacy-focused cryptocurrencies while expanding access to more mainstream digital assets. The upcoming legislation will not only affect domestic traders but also facilitate the use of cryptocurrencies for international transactions. This could include cross-border settlements and the global use of Russian-issued tokens.