Russia Opens Crypto Door – But Only for the Super-Rich

Russia's Finance Ministry and Central Bank are developing a state-backed cryptocurrency exchange under an Experimental Legal Regime (ELR). Access will be restricted to "super-qualified" investors possessing over $1.2 million in assets or over $600,000 in annual income, albeit these figures are negotiable. The exchange will legalize and regulate crypto business for a select group of elites, providing high-net-worth families and businesses alternative financial products as a counter-sanctions option.

The cryptocurrency trading will be carried out under the ELR, outside Russia's local financial system, for cryptocurrency trades for foreign trade and investment purposes. Crypto trading will be available directly to retail investors only and only through regulated derivatives. Although the step is to bring crypto activities under check, the Central Bank is firm in not allowing the utilization of cryptocurrencies as legal tender for local payments.

The date of opening of the exchange is yet to be determined, the authorities proposing a launch within the next few months as they finalize rules, regulations, and licensing. The move is a measured step towards the legalization and regulation of crypto activities in a regulated environment, a major policy shift in Russia on digital assets, but with severe limits on broader access by the general public.