Russia is witnessing a significant surge in cryptocurrency transactions, with daily spending hitting approximately 50 billion Russian rubles, equivalent to $648 million. This development comes as both the finance ministry and central bank urge the government to expedite regulatory measures for the crypto market.
In a recent panel at the Alfa Talk conference, Deputy Finance Minister Ivan Chebeskov highlighted the pressing need for regulation, pointing out that a large portion of crypto transactions is conducted through unregulated channels. He stated, “We have always said that millions of citizens are involved in this activity, these are trillions of rubles from the point of view of citizens in use, in savings.”
The reported daily volume translates to an annual turnover exceeding 10 trillion rubles, or $129.4 billion, indicating robust adoption of digital assets in Russia, especially as the country navigates through economic sanctions imposed by the West.
The European Union has expressed concerns regarding Russia”s potential use of cryptocurrency to circumvent these sanctions, prompting discussions on banning all crypto transactions involving Russia.
In December, the Russian central bank proposed a policy that would allow both qualified and non-qualified investors to engage with specific crypto assets, marking a shift from its previous stance advocating for a complete ban on digital currencies. This proposal sets a limit for non-qualified investors at 300,000 rubles, or about $3,834, while granting broader access to qualified investors, excluding privacy coins.
During the same panel, Vladimir Chistyukhin, the first deputy chairman of the Russian central bank, expressed hope that the government would approve the crypto market regulation during the upcoming spring session of the State Duma. He mentioned, “We would very much like the government to see the law adopted in the spring session. I hope that this is a possible consensus decision…”
As regulatory frameworks evolve, Russia”s growing engagement with cryptocurrencies presents both opportunities and challenges, particularly in the context of international sanctions and local market dynamics.
