Russia Weighs Launching Crypto Trading for Super-Qualified Investors

• Russia’s Ministry of Finance has ruled out adding Bitcoin (BTC) to the nation’s sovereign wealth fund.
• Russia has delayed the rollout of the Digital Ruble CBDC indefinitely.
• There are no centralized crypto exchanges operating in Russia.

Russia may finally be ending its long-standing ban on domestic cryptocurrency trading by creating a new experimental centralized crypto exchange. However, it’ll only be available to “super-qualified” investors, a category that the government has yet to define.

Russia’s digital asset ambitions still face an uphill battle with its central bank digital currency (CBDC) plans on ice, troubles building a sustainable Bitcoin mining industry, and a troubled war economy.

A Wealthy Approach

According to  local media reports , the Bank of Russia (BoR) and its Ministry of Finance are considering launching a crypto trading platform for “super-qualified” investors, i.e. wealthy individuals. However, the category hasn’t been officially defined.

Aleksey Yakovlev, head of financial policy at the Ministry of Finance, explained (translated) that the category “does not exist yet” and that evaluations on its risk to the “financial system, monetary policy, and security” are still to be made.

In Western markets, the “super-qualified” investor could be anything from a rich individual to an entire financial institution. However, Yakovlev clarifies it’s “more about” skilled traders and professional individuals.

Russia’s recent bid to catch up with the global race for digital assets and blockchain technology has been a complicated journey at best.

This is best evidenced by the now-postponed rollout of its central bank digital currency (CBDC), the digital ruble, which was put on pause following feedback from banks and concerned domestic entities.

While owning crypto is legal, using crypto for goods and services has been prohibited since July 2020.

Crypto in Russia

Sanctions against Russia following its invasion of Ukraine have squeezed the economy to breaking point, forcing the government to rethink its fiscal strategy.

This is why, in the past year, the government has been working on building frameworks that make certain aspects of crypto legal.

In Aug. 2024, the Russian government officially regulated Bitcoin mining with sweeping tax and energy legislation . It then began scaling back the project with six-year regional mining bans due to energy shortages.

Now, Russia’s head of the State Council Commission on Energy has said it is considering building crypto mining power stations to avert an energy crisis.

The Russian government greenlit Bitcoin’s use for small businesses doing international trade in Dec. 2024. However, it still lacks a centralized crypto exchange or proper regulations, which has allowed crypto crime to surge in Russia.

Speculation that Russia is accumulating BTC or other cryptos as part of a national strategic reserve effort similar to the U.S. has been laid to rest.

The Ministry of Finance recently declared crypto “too volatile” to be considered for the nation’s sovereign wealth fund.