Russia sets annual crypto purchase limit of $3.645

The Russian central bank wants to restrict the purchase of cryptocurrencies by ordinary investors. Through a draft proposal, the Bank of Russia proposes an annual purchase limit of 300,000 roubles, approximately $3.645, per intermediary. That applies separately to each broker, crypto exchange or asset manager.

In brief:

• Ordinary investors in Russia will soon be allowed to put a maximum of 300,000 roubles (~$3.645) per year per intermediary into crypto.
• Only Bitcoin, Ethereum and Tether USDT are eligible for this group of investors.
• All investors must undergo a mandatory risk test before they can trade crypto.

Only the most liquid coins allowed

To protect less experienced investors against sharp price fluctuations, only the most liquid cryptocurrencies are eligible. The selection criteria used by the Bank of Russia are market capitalisation, average daily trading volume and a price history of at least five years on foreign exchanges.

Based on these criteria, the permitted list lands on three names: Bitcoin, Ethereum and Tether USDT. The central bank is publishing this proposal for public consultation, according to the Bank of Russia. Responses and comments can be submitted until 24 August.

Professional investors get more leeway

The restrictions do not apply to so-called qualified investors. They can buy crypto without limits, both through exchanges and through the over-the-counter market, and have access to all cryptocurrencies being traded.

However, all investors, regardless of their status, must first take a mandatory risk test before they can trade crypto at all. That is a measure that applies to all market participants. The proposal is now open for inspection and the final rules have not yet been determined.