An official from the Bank of Russia has suggested easing restrictions on cryptocurrencies, a move prompted by the extensive sanctions imposed on the country.
According to a report by local news outlet Kommersant, Bank of Russia First Deputy Governor Vladimir Chistyukhin stated that the regulator is discussing the relaxation of cryptocurrency regulations. He specifically highlighted that the rationale behind this effort is directly linked to the sanctions levied against Russia by Western nations following its invasion of Ukraine in February 2022.
Chistyukhin emphasized that easing crypto rules is particularly relevant when Russia and its citizens face limitations on the use of traditional currencies for international payments.
Russia had previously banned the use of cryptocurrencies for payments in the summer of 2020.
Chistyukhin anticipates that an agreement between Russia's Central Bank and the Ministry of Finance on this matter will be reached by the end of the current month. A central point of discussion is the potential removal of the "super-qualified investor" criteria, which is currently required for buying and selling crypto with actual delivery. This requirement was implemented in late April as Russia's finance ministry and central bank were initiating a crypto exchange.
Understanding the Super-Qualified Investor Classification
The super-qualified investor classification, established earlier this year, is defined by specific wealth and income thresholds. Individuals must possess net assets exceeding 100 million rubles (approximately $1.3 million) or an annual income of at least 50 million rubles (approximately $650,000) to qualify.
This classification effectively restricts access to cryptocurrencies for transactions or investment purposes to a very small segment of Russian society. Chistyukhin indicated a potential shift in the regulatory approach, stating, "We are discussing the feasibility of using ‘superquals’ in the new regulation of crypto assets."
Russia's Response to Sanctions
Russia has been subjected to extensive Western sanctions for several years. In parallel, regulators in the United States and Europe have increasingly focused on crypto-based mechanisms that could be used to circumvent these measures.
In late October, the European Union enacted its 19th sanctions package against Russia, which included restrictions targeting cryptocurrency platforms. This package also imposed sanctions on the A7A5 ruble-backed stablecoin, which EU authorities identified as a significant tool for funding activities that support the ongoing conflict.
Earlier in October, reports surfaced that A7A5, a stablecoin backed by the Russian ruble but issued in Kyrgyzstan, had become the world's largest stablecoin not denominated in US dollars. Furthermore, in August, the US Treasury’s Office of Foreign Assets Control (OFAC) redesignated the cryptocurrency exchange Garantex Europe to its list of sanctioned entities for a second time.