According to the central bank, such a framework would introduce standards for crypto asset service providers in Russia and expand investment opportunities for experienced investors willing to take on increased risks.“The Bank of Russia has repeatedly noted that private cryptocurrencies are not issued or guaranteed by any jurisdiction, based on mathematical algorithms and are subject to increased volatility,” the authority stated, adding:“Therefore, investors, when deciding to invest in cryptocurrency, should be aware that they are taking on the risks of potential loss of their funds.”Rising odds of a “Russian MicroStrategy? ”In the announcement, the central bank said that it also proposed to allow qualified companies to become participants in the experiment.“For financial institutions that want to invest in cryptocurrency, the Bank of Russia will establish regulatory requirements taking into account the level and nature of the risks of such an asset,” the authority stated.
Therefore, it proposes to also introduce a ban on settlements between residents on transactions with cryptocurrency outside the experimental legal regime, as well as establish liability for violating the ban.”Despite banning residents from using crypto for payments in Russia, the Bank of Russia has been open about allowing cross-border settlements in crypto since at least 2022.
Related: Tether freezes $27M USDT on sanctioned Russian exchange GarantexBy potentially allowing eligible Russian firms to invest in cryptocurrencies, the Bank of Russia may be paving the way for a “Russian MicroStrategy,” or a company that would be committed to buying large amounts of BTC following the lead of Michael Saylor’s Strategy, formerly known as MicroStrategy.
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