Russias Central Bank Considers Ban on Cryptocurrency Payments Outside Experimental Legal Regimes

The Bank of Russia has proposed banning the use of cryptocurrencies for transactions between domestic residents outside of experimental legal regimes (ELR). This was announced by the head of the regulator, Elvira Nabiullina, during a press conference.

The Central Bank believes that digital assets should not be used as a means of payment, and has suggested implementing penalties for violators.

Nabiullina also pointed out the high volatility of cryptocurrencies, their association with opaque transactions, and the risks they pose to users. Nevertheless, the Central Bank is open to establishing a regulated environment.

She further indicated that the experimental regime could be a platform to develop operating standards, provide access to «qualified» investors, and assess potential changes in investment approaches to cryptocurrencies.

According to her, the regulator views the experimental framework as a way to enhance market transparency and minimize risks, while keeping transactions in digital assets under strict oversight.

It is worth noting that on March 12, the Central Bank of the Russian Federation proposed allowing qualified individuals to trade cryptocurrencies within a three-year experimental legal regime.