Russia Proposes Crypto Ban with Penalties for Unauthorized Transactions

According to ShibDaily, Russia's Central Bank Governor Elvira Nabiullina has announced plans to implement a ban on cryptocurrency transactions between residents unless conducted within Russia’s experimental legal framework. Nabiullina emphasized the necessity of imposing penalties on those who circumvent the proposed ban. She stated that consequences should be enforced for individuals or entities using digital assets as a means of payment outside the approved legal framework. The Bank of Russia maintains its stance that cryptocurrencies should not be permitted as a means of payment, proposing a ban on settlements in cryptocurrencies between residents outside the Experimental Legal Regime (EPR). Furthermore, the Bank of Russia suggested that cryptocurrency investments, which carry heightened risks, should be tested within an experimental framework to establish standards, improve transparency, and assess investor qualification criteria. Previously, the Central Bank’s head stated that it was time to advance Russia’s approach to cryptocurrencies. Nabiullina emphasized the need for a regulatory framework that would allow "particularly qualified" investors to participate in the Russian crypto market. Additionally, Vladimir Chistyukhin, First Deputy Chairman of the Bank of Russia, warned about the dangers of cryptocurrency transactions, describing them as an "extremely risky activity" and asserting that unqualified investors "must be protected from it as much as possible." In early March, Russia’s Ministry of Finance and the Central Bank initiated discussions on permitting cryptocurrency trading within the Experimental Legal Regime (ELR). These discussions focused on limiting participation to "super-qualified" investors, who meet stringent criteria for financial expertise and risk tolerance. The "super-qualified" investor category will be accessible to both professional market participants and individuals, rather than being restricted to banks. To qualify, applicants must meet strict criteria that align with existing financial market qualification standards. Currently, qualified investors must have a minimum financial threshold of 12 million rubles, which will increase to 24 million rubles starting January 1 of next year.