Russia's New Crypto Rules: What You Need to Know

Russia is making a significant shift in its approach to cryptocurrencies. The central bank has proposed allowing regular citizens to purchase crypto, but with stringent limitations.

Key Points

• Annual Purchase Limit: Individuals can buy up to 300,000 rubles worth of crypto per year.
• Mandatory Risk Assessment: Buyers must pass a test to demonstrate their understanding of crypto risks.
• Professional Investors: They can purchase crypto without limits but must also pass a test and avoid anonymous cryptocurrencies.

Central Bank's Stance

The central bank emphasizes:

• Volatility and Risk: Crypto is highly volatile and lacks government backing, posing financial risks.
• Valid Investment: Despite risks, crypto is recognized as a legitimate investment option.

Usage Restrictions

• No Everyday Transactions: Crypto cannot be used for daily purchases to protect the ruble's strength.
• Allowed for Large Trades: Crypto can be used for significant transactions, such as oil trades, as part of Russia's strategy to bypass Western sanctions.

Timeline and Enforcement

• Final Rules Expected: By July 2026.
• Penalties Start: 2027 for violations.
• Licensed Platforms: Crypto purchases will be facilitated through approved platforms.
• Tax Reporting: Purchases made abroad must be reported to tax authorities.

Conclusion

This policy reflects Russia's effort to balance innovation with caution, allowing crypto usage while mitigating risks. The outcome of this approach remains to be seen.