The Central Bank of the Russian Federation is introducing strict controls and restrictions on the cryptocurrency market; cryptocurrency is now banned from being used as a means of payment.
According to Ukrinform, the Foreign Intelligence Service of Ukraine (SZRU) stated this on its website.
“The Central Bank of Russia has developed a concept for regulating the cryptocurrency market that is more likely to cement state control over digital assets than pave the way for their development. The proposed model formally defines the legal status of cryptocurrencies, but in fact embeds the market in a strict system of currency and financial supervision,” the SZRU said.
According to the document, digital currencies and stablecoins are recognized as currency valuables. They may be bought and sold, but their use as a means of payment within the territory of the Russian Federation is prohibited, which entrenches the monopoly of the ruble in domestic circulation.
Thus, the SZRU emphasized, crypto assets are finally stripped of any function as alternative money and reduced to a narrow investment instrument.
The circulation of cryptocurrencies is allowed exclusively through controlled intermediaries โ exchanges, brokers, and trust managers. A separate regulatory regime is introduced for depositories and exchange offices.
The concept also introduces a strict classification of investors.
“Qualified” market participants are given relative freedom of action, with the exception of transactions with anonymous cryptocurrencies. “Unqualified” investors are limited to a list of the most liquid assets and a limit of 300,000 rubles per year through a single intermediary. Although the regulator allows cross-border transactions โ the purchase of cryptocurrencies abroad and transfers outside Russia โ such actions are subject to mandatory declaration to tax authorities. This once again underscores the fiscal focus of the Central Bank of Russia’s approach.
“As a result, the proposed model does not liberalize the digital asset market, but preserves it within the framework of strict control. Tightening regulatory barriers and restrictions for investors will curb legal domestic demand and, contrary to the stated goals, may only strengthen illegal channels for cryptocurrency circulation in Russia,” the SZRU concluded.
As Ukrinform reported, the Russian authorities are trying to plug budget gaps through penalties and fines imposed on the population and businesses.
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