Russia’s Central Bank Proposes Framework for Publicly Trading Major Cryptocurrencies

Russia’s Central Bank on Tuesday proposed a framework for publicly trading Bitcoin, Ether, and Tether on official Russian exchanges. This new regulated infrastructure for cryptocurrency trading is set to commence on September 1st following President Vladimir Putin’s recent signing of a law that formalizes such trading in the country.

Both retail and professional investors will have to pass a test before trading these major cryptocurrencies. Presently, retail investors constitute approximately 98% of market participants. The Central Bank’s decision to allow cryptocurrencies in cross-border settlements while prohibiting their use as payment methods within Russia stems from the new law.

The Bank selected Bitcoin, Ether, and Tether due to their five-year price history on foreign platforms, high liquidity, and substantial market capitalization. Retail investors are capped at annual purchases of 300,000 rubles ($3,690) per intermediary, which will include exchanges, brokers, asset managers, and digital depositories.

These intermediaries will be subject to stringent regulation by the Central Bank. Accredited investors, however, will have unrestricted access to purchase any cryptocurrency listed on either exchange markets or over-the-counter markets. The Central Bank granted a feedback deadline of August 24th for its draft proposals before the framework’s entry date on September 1st.