The Bank of Russia has proposed allowing select investors to trade cryptocurrencies under a three-year experimental legal regime.

The initiative, aimed at increasing market transparency, would permit only investors with at least$1.1 million in securities and deposits to participate. The Central bank also suggested introducing penalties for violations of the proposed framework.

Despite this move, the Bank of Russia reiterated its strict stance on cryptocurrency payments within the country. Bitcoin and other digital assets for transactions remain banned under Russia's existing crypto regulations.

However, the government continues exploring the use of crypto for cross-border payments, with ongoing trials in foreign trade.

The central bank's proposal could also open the door for regulated corporate investments in crypto. If implemented, this could pave the way for Russian firms to follow the strategy of companies like Strategy, which has amassed a significant Bitcoin portfolio.

The plan includes regulatory measures to mitigate the risks associated with crypto investments while expanding financial opportunities for experienced investors.

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