Russia plans to cap retail crypto buys at $4,000 as it brings digital assets into the legal fold

Core Viewpoint - Russia is set to implement cryptocurrency market regulations by June 2027, allowing both qualified and unqualified investors to participate under different rules [1][2]. Group 1: Regulatory Framework - The regulations will impose a cap of 300,000 rubles ($4,000) on retail investors' cryptocurrency purchases [2]. - Qualified investors will need to pass mandatory testing to understand cryptocurrency transaction risks, but they can purchase unlimited quantities of crypto assets, excluding anonymous ones [2]. - The framework will include penalties for illegal activities by intermediaries, akin to sanctions for illegal banking activities [3]. Group 2: Central Bank's Role - The Central Bank of Russia proposed a framework in December to legalize and regulate cryptocurrency trading for individuals and institutions, indicating a shift towards a more favorable stance on cryptocurrencies [4]. - Digital currencies and stablecoins are recognized as monetary assets but are not permitted for domestic payments [4]. Group 3: Mining and Trading - Cryptocurrency miners will be encouraged to legalize their operations, with potential administrative, financial, and criminal liabilities for illegal activities [5]. - The Central Bank will compile a list of 5 to 10 cryptocurrencies allowed for trading, likely including BTC and ETH, with others available only to qualified investors [5]. Group 4: Anti-Money Laundering Measures - The Central Bank prohibits the purchase of cryptocurrencies that conceal transaction recipients, such as Monero (XMR), Zcash (ZEC), and Dash, to comply with anti-money laundering (AML) regulations [6].