Russian Central Bank seeks to ban cryptocurrency, except for wealthy

The Central Bank of Russia has proposed restricting cryptocurrency transactions to "particularly qualified investors" who possess over RUB 100 million (US$1.1 million) in securities or have earned more than RUB 50 million (US$560,000) per year.

Source: The Moscow Times

Details: For other citizens, cryptocurrency transactions may be prohibited, with penalties introduced for violations. 

The regulator reaffirmed that "the Central Bank of Russia still does not consider cryptocurrency as a means of payment". It also plans to ban crypto transactions between Russian residents and impose regulatory requirements on financial institutions seeking to invest in digital assets.

Since 1 September 2024, Russia has allowed international settlements in cryptocurrency under an experimental legal framework. However, in late November, Vladimir Putin signed a law recognising digital currencies as taxable property.

Additionally, Russia legalised cryptocurrency mining on 1 November 2024, with new tax regulations for miners taking effect in 2025. However, the government has banned mining in the North Caucasus republics and occupied territories of Ukraine.

Background: Stablecoin issuer Tether recently froze RUB 2.5 billion (US$28 million) worth of USDT on the Russian cryptocurrency exchange Garantex, forcing the platform to suspend operations. 

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