The Russian Ministry of Finance and the Central Bank plan to launch a national Crypto Assets exchange.

Source: Blockchain Knight

Local media reported on April 23 that the Russian Ministry of Finance and the Central Bank plan to launch a Crypto asset exchange targeted solely at high-qualified investors, confirming rumors from earlier this year.

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

The system, which will take effect from September 2024, provides a strictly controlled environment for digital asset experimentation, but it does not legalize Crypto asset payments in the domestic economy of Russia.

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

This move aims to pull crypto asset activities out of the informal market and place them under regulation.

The eligibility for the new platform will be limited to investors classified as "high-quality," which includes individuals holding a large amount of securities or deposits exceeding 100 million rubles, or individuals with an annual income exceeding 50 million rubles.

According to reports, officials are still finalizing the exact qualification criteria, and ongoing discussions are expected to incorporate the opinions of lawmakers.

Osman Kabaloev, a senior official from the Ministry of Finance, pointed out that the investor access rules are still under review, and lawmakers have expressed interest in participating in the formulation of the framework. The authorities aim to establish clear standards while maintaining financial security and system integrity.

Previously, the Central Bank of Russia 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 still opposes the use of crypto assets for domestic payments outside of this system.

The regulatory agency also suggested banning the settlement of digital assets between residents and imposing penalties for violations.

Deputy Minister of Finance Ivan Chebeskov stated that Russia's current exchange infrastructure can support the upcoming Crypto asset trading activities.

The authorities are also considering issuing licenses to new trading venues that meet strict regulatory requirements. The pilot exchanges are expected not 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 domestically. Due to the lack of centralized national exchanges, most crypto asset activities rely on foreign platforms, which brings additional legal and geopolitical risks.

The planned exchange marks a significant shift in Russia's attitude towards digital assets, indicating its efforts to balance innovation in global trade with strict domestic restrictions on the use of Crypto assets.