Russia Expands Crypto Access for Retail Investors Amid Regulatory Overhaul

Source: DefiPlanet Original Title: Russia Expands Crypto Access for Retail Investors Amid Regulatory Overhaul Original Link:

Quick Breakdown

• Bank of Russia drafts policy for non-qualified investors to trade select cryptos after risk test.
• Annual cap at 300,000 rubles ($3,800); qualified investors face fewer limits, excluding privacy coins.
• Rules align with 2026 legislation, requiring licensed intermediaries for all trades.

Russia’s Bank of Russia has proposed sweeping changes to cryptocurrency regulations that would, for the first time, grant non-qualified investors—everyday retail participants—access to digital assets. The policy establishes a tiered investor system. Non-qualified individuals must complete a mandatory risk-awareness exam and limit purchases to the most liquid cryptocurrencies, such as Bitcoin and Ethereum, through a single licensed intermediary. Their annual investment ceiling stands at 300,000 rubles, equivalent to about $3,800 at current rates.

This move reverses years of restrictive policies driven by concerns over financial stability and sanctions evasion. Previously, crypto trading remained confined to qualified investors with high wealth thresholds of over 100 million rubles in assets or 50 million rubles in yearly income, or professional entities. Qualified investors under the new framework gain broader access to non-anonymous tokens without volume caps, though they, too, undergo testing. All participants face bans on privacy-focused coins that use smart contracts to hide transaction details. The central bank emphasizes that cryptocurrencies are high-risk monetary assets suitable for buying and selling, but not for domestic payments.

Sanctions Drive Policy Shift

Since 2022, Western sanctions have accelerated Russia’s pivot toward crypto for cross-border payments and liquidity. The central bank launched a domestic crypto exchange earlier this year for super-qualified investors, testing the infrastructure that is now scaling to retail levels. Officials cite enhanced market oversight and liquidity as goals, with rules mirroring the structure of EU MiCA. Legislation targets passage by July 2026, with penalties for unlicensed operators starting in 2027. Critics note persistent risks, including volatility and illicit use, but proponents argue controlled access builds investor education.

Global Context Balances Optimism and Caution

This development aligns with global trends where regulators balance innovation and protection. Similar tiered models operate in the EU and Asia, capping retail exposure while enabling institutional growth. Russia’s framework prioritizes compliance via intermediaries, potentially boosting tax revenues from tracked trades. However, the knowledge test aims to curb losses due to uninformed trading amid crypto’s volatility. Market watchers predict increased Bitcoin and Ethereum demand locally, though the whole implementation hinges on the final laws.