Currently, while China has yet to make a decisive move, Russia has been signaling its intentions for some time. The groundwork is being laid for further action. Former President Trump has taken several supportive steps to position the U.S. as the capital of cryptocurrency investment. What actions is Russia taking in this context?
Russia and Cryptocurrencies
At the time of this article, U.S. markets opened positively, with BTC experiencing a modest rise to $83,000. Additionally, the Bank of Canada announced a 25 basis point interest rate cut. The agenda is fast-moving, and there are new updates emerging from Russia. The country’s central bank has proposed a limited opening for cryptocurrency investments under directives from President Putin.
According to the central bank’s announcement, the plan includes a three-year experimental legal regime (ELR) that will allow “qualified” investors to conduct cryptocurrency transactions.
Who Will Be Allowed to Trade Cryptocurrencies?
To qualify as a qualified investor, specific criteria must be met. Individual investors are required to possess either $1.14 million in cash or an annual income exceeding $570,000. Institutional entities that meet this status will also be allowed to invest.
This program targets seasoned investors seeking more risk, expanding their access to investment opportunities while also starting to establish standards for cryptocurrency services.
Penalties and Restrictions
Allowing qualified investors to trade cryptocurrencies implies a ban for others. The Central Bank of Russia reiterated previous warnings about the volatility of cryptocurrency markets and cautioned against these assets, which lack any legal jurisdiction. In line with its stance, the central bank is calling for bans and penalties for cryptocurrency investors outside the ELR.
Last year, the State Duma, the lower house of the country, legitimized cryptocurrency mining and accepted two bills concerning cross-border payments and exchanges. However, the central bank has consistently maintained its skepticism toward cryptocurrencies. The latest development reflects a significant shift in the central bank’s attitude.
As this article was being prepared, Canada announced new retaliatory measures, while Germany spoke of consensus and dialogue. Meanwhile, BTC has declined to $82,500.
