The Bank of Russia has submitted to the government of a controlled experiment that allows a “limited group of Russian investors” to trade cryptocurrencies, based on a directive from the country’s President Vladimir Putin.

The plan would introduce an experimentally legal regime (ELR) that lasts three years, where “especially qualified” investors would be allowed to implement cryptocurrency transactions, according to a statement from the central bank.

To be considered “especially qualified”, individual investors would need over 100 million rubles ($ 1.14 million) in investments or an annual income exceeding 50 million rubles ($ 570,000). Institutions recognized as qualified investors would also be able to trade cryptocurrency.

The initiative aims to establish standards for crypto-related services and increase the market’s transparency while expanding the investment opportunities for “experienced investors who are willing to take on higher risks.”

Bank of Russia repeated its warnings about the volatility and risks of the cryptocurrency market and emphasized that they are not supported by any jurisdiction. In accordance with its attitude, the central bank suggested to ban cryptocurrency transactions between residents outside ELR and enforce sanctions for violations.

In addition to direct cryptocurrency, Bank of Russia plans to give qualified investors access to derivatives and securities linked to digital assets, provided they do not involve direct cryptocurrency ownership.

The move is Russia’s latest step into the cryptocurrency room. Last year, the country’s lower house in the federal assembly, the state of Duma, adopted two bills that legalized cryptocurrency mining and brought an experimental regime on cross-border settlements and exchange trade in digital currency.

The country’s central bank is looking to get its largest banks to support a digital ruble for retail and commercial use later this year. The country has been strongly sanctioned by the United States and Europe following its invasion of Ukraine, and the central bank’s digital currency is seen as a way of bypassing the financial restrictions it faces.

Back in 2021, the Bank of Russia said the ruble-backed central bank’s digital currency could be used as a tool for sanctions.

Disclaimer: The information collected for this article was translated with the use of artificial intelligence.