Russia’s Ministry of Finance and Central Bank Plan to Launch National Cryptocurrency Exchange

Source: Blockchain Knight

The Russian Finance Ministry and the Central Bank plan to launch a Crypto asset exchange for highly qualified investors only, local media reported on April 23, confirming rumors earlier this year.

The exchange aims to regulate digital asset activities under a pilot legal framework and promote its use in cross-border trade. It will operate within an experimental legal regime established to allow foreign trade participants to settle transactions through Crypto assets.

The regime, which will take effect from September 2024, provides a strictly controlled environment for digital asset experiments, but does not legalize Crypto asset payments in the Russian domestic economy.

Finance Minister Anton Siluanov outlined the plan at a recent meeting of the Ministry of Finance Committee, indicating that the government intends to create a compliant channel for large-scale Crypto asset transactions.

The move is intended to pull Crypto asset activity out of the informal market and bring it under regulation.

Access limited to Russia's financial elite

Access to the new platform will be limited to investors classified as "highly qualified," a category that includes individuals with large securities holdings or deposits exceeding 100 million rubles, or individuals with annual income exceeding 50 million rubles.

Officials are reportedly still finalizing the exact eligibility criteria, and the ongoing discussions are expected to incorporate input from lawmakers.

Senior Finance Ministry official Osman Kabaloev noted that investor access rules are still under review and lawmakers have expressed interest in participating in the development of the framework. Authorities aim to set clear standards while maintaining financial security and system integrity.

Previously, the Russian Central Bank submitted a proposal to allow this elite class of investors to trade Crypto assets within the scope of a legal experiment. However, the central bank remains opposed to the use of Crypto assets for domestic payments outside of the system.

The regulator also proposed a ban on the use of digital assets for settlements between residents and penalties for violations.

Pilot to use existing infrastructure

Russia's current exchange infrastructure can support upcoming Crypto asset trading activities, said Deputy Finance Minister Ivan Chebeskov.

Authorities are also considering issuing licenses for new trading venues that meet strict regulatory conditions. The pilot exchange is not expected to be operational for at least six months.

Currently, Russian citizens are allowed to hold, mine and trade crypto assets, but legal restrictions prohibit them from using crypto assets for payments within the country. Due to the lack of a centralized national exchange, most crypto asset activity relies on foreign platforms, which poses additional legal and geopolitical risks.

The planned exchange marks a major shift in Russia's attitude toward digital assets, indicating that it is working to balance innovation in global trade with strict domestic restrictions on the use of crypto assets.