Russia’s central bank is slowly opening up to crypto-related products, but only in a very controlled way. The move comes at a time when several countries, including the U.S., European Union, Japan, and the UK, have placed strict sanctions on Russia, many of them targeting digital assets and crypto usage.
So, what exactly does this mean for the market and investors?
In a statement released this week, the Bank of Russia confirmed that financial institutions are now allowed to offer products that are linked to cryptocurrency prices. These include derivatives, securities, and digital financial assets. But there’s a catch, these products cannot be settled in actual crypto.
In short, investors won’t be receiving Bitcoin or Ethereum but only products tied to their price movements.
And these products won’t be for everyone. Only “qualified investors,” a restricted group with the required experience and financial background, will be able to trade them.
Even with this new step, the Russian central bank isn’t diving into crypto without a safety net. It told banks and other credit institutions to be extremely careful with these products. They must fully back these instruments with capital and also set limits to avoid big risks.
Over the coming year, the Bank of Russia also plans to formalize rules that would better manage risks tied to the volatile nature of cryptocurrency prices.
Many countries have already cracked down on Russia’s use of digital assets. After the Ukraine conflict, the U.S., EU, Japan, and the UK imposed sanctions that also covered crypto to prevent Russia from using it as a loophole to move money.
Because of this, Russia has been trying to find new ways to explore the digital finance world without breaking global rules.
Even though crypto rules in Russia aren’t very clear, the country has a lot of Bitcoin. The Central Bank of Russia and some government offices have gotten bitcoin either by buying it directly or by seizing it from criminal activities.
It’s believed that Russia has over 50,000 BTC worth around $5.5 billion in total.
Could one of XRP’s biggest backers be getting scooped up? A bold tweet from pro-Ripple…
Rexas Finance (RXS) is firing on all cylinders as it launches on three big-name crypto…
Ethereum is expected to rise by just over 3% in the coming months, according to…
In a warning that’s catching attention across the crypto space, former Binance CEO Changpeng Zhao…
The debate between Cardano and Solana is being widely discussed, especially after a sharp remark…
Whenever Bitcoin stumbles, Peter Schiff is quick to remind everyone why he thinks it’s doomed.…