Russia Authorizes Bitcoin, Ethereum, and Tether for Public Trading

The Central Bank of Russia announced a framework on August 11 to allow the public trading of Bitcoin, Ethereum, and Tether (USDT) on regulated national exchanges. This decision follows a law signed by President Vladimir Putin on August 4 that legalized cryptocurrency trading and empowered the central bank to establish regulatory rules.

Starting September 1, the regulator will restrict retail trading to these three specific assets, which were selected based on their market capitalization, liquidity, and a minimum five-year pricing history on foreign platforms. The framework introduces a tiered system for investors: accredited or qualified investors may trade without restrictions, while non-qualified retail investors are limited to annual purchases of 300,000 rubles per intermediary.

To mitigate risk, the central bank requires all investors to pass a test regarding investment risks before executing transactions. While the new rules permit the use of cryptocurrencies for cross-border settlements, the regulator maintains a strict prohibition on using any cryptocurrency as a payment method for domestic transactions within Russia. The central bank is accepting public feedback on these draft proposals until August 24.