Russia is considering relaxing crypto rules due to stricter Western sanctions

The Central Bank of Russia is reportedly investigating whether strict crypto regulations can be relaxed. Due to the heavy sanctions that have hit the country since the invasion of Ukraine in 2022, it is becoming increasingly difficult for Russia to make international payments in traditional currencies. Cryptocurrency is therefore once again seen as a possible alternative.

Russia is looking for alternatives to international payments

Speaking to the Russian business medium Kommersant, First Deputy Governor Vladimir Chistuchin said that the central bank is actively looking at a more flexible approach to cryptocurrencies. According to him, this is especially relevant now that Russia and Russian citizens worldwide are restricted in the use of currencies such as the euro and the dollar.

Russia banned the use of cryptocurrencies for payments in 2020, but economic isolation is causing the government to reconsider its previous strict stance.

Only rich Russians are now allowed to buy crypto

Currently, only so-called super-qualified investors are allowed to buy and sell cryptocurrencies that actually provide crypto coins. To obtain that status, a person must have assets of more than 100 million rubles or an annual income of at least 50 million rubles. This means that only a small, wealthy group has access to the market.

The central bank is now discussing with the Ministry of Finance whether these requirements should be relaxed or eliminated altogether. An agreement is expected to be reached later this month.

While Russia is relaxing, the US and EU are tightening their thumbs

It is striking that Russia may be relaxing its crypto rules at the same time that Western countries are tightening them. There is a fear that Russia will use crypto to circumvent sanctions.

In October, the European Union added additional restrictions for crypto platforms. It also imposed sanctions on the ruble-backed stablecoin A7A5, which Brussels says is used to finance war-related activities. Earlier this year, A7A5 was the largest non-US stablecoin in the world.

The United States is also taking tougher action. In August, the Ministry of Finance put the crypto exchange Garantex Europe back on the sanctions list.