The Central Bank of the rf Is Strangling the Cryptocurrency Market with Strict Controls and Restrictions

The Central Bank of russia has developed a concept for regulating the cryptocurrency market that is more likely to cement state control over digital assets than pave the way for their development. The proposed model formally defines the legal status of cryptocurrencies, but in fact embeds the market in a strict system of currency and financial supervision.

According to the document, digital currencies and stablecoins are recognized as currency values. They can be bought and sold, but their use as a means of payment on the territory of the rf is prohibited, which reinforces the monopoly of the ruble in domestic circulation. Thus, crypto assets are finally deprived of any function as alternative money and reduced to a narrow investment instrument.

The circulation of cryptocurrencies is permitted exclusively through controlled intermediaries – exchanges, brokers, and trust managers. A separate regulatory regime is being introduced for depositories and exchangers.

The concept also introduces a strict classification of investors. “Qualified” market participants are given relative freedom of action, with the exception of transactions with anonymous cryptocurrencies. “Unqualified” investors are limited to a list of the most liquid assets and a limit of 300,000 rubles per year through a single intermediary.

Although the regulator allows cross-border transactions – the purchase of cryptocurrencies abroad and transfers outside the rf – such actions are subject to mandatory declaration to the tax authorities. This once again emphasizes the fiscal orientation of the rf Central Bank’s approach.

As a result, the proposed model does not liberalize the digital asset market, but preserves it within the framework of strict control. Tightening regulatory barriers and restrictions for investors will curb legal domestic demand and, contrary to the stated goals, may only strengthen illegal channels for cryptocurrency circulation in russia.